UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07454
Pacific Capital Funds
(Exact name of registrant as specified in charter) |
3435 Stelzer Rd. Columbus, OH | 43219 | |
(Address of principal executive offices) | (Zip code) |
BISYS Fund Services 3435 Stelzer Road Columbus, OH 43219
(Name and address of agent for service) |
Registrant’s telephone number, including area code: 614-470-8000
Date of fiscal year end: 7/31
Date of reporting period: 7/31/06
Item 1. | Reports to Stockholders. |
Table of Contents
Letter to Shareholders | Page 1 | |
Fund Performance Review | Page 3 | |
Statements of Assets and Liabilities | Page 29 | |
Statements of Operations | Page 32 | |
Statements of Changes in Net Assets | Page 35 | |
Schedules of Portfolio Investments | Page 43 | |
Notes to Financial Statements | Page 75 | |
Financial Highlights | Page 86 | |
Report of Independent Registered Public Accounting Firm | Page 98 | |
Additional Tax Information | Page 99 | |
Trustees and Executive Officers of the Pacific Capital Funds | Page 100 | |
Expense Examples | Page 103 | |
Proxy Voting and Portfolio Holdings Information | Page 107 |
Letter to Shareholders
Dear Shareholders:
Thank you for investing with Pacific Capital Funds. We value the trust you place in us, and we seek to provide world-class investment management to help you meet your financial goals.
Pacific Capital Funds draws on the expertise of the Asset Management Group of Bank of Hawaii (AMG). AMG represents the largest, most experienced staff of investment professionals in Hawaii, and manages almost $4.7 billion in mutual fund assets. In addition, certain AMG employees also manage approximately $2.4 billion in assets on behalf of Bank of Hawaii clients. In specialized securities markets, AMG has partnered with a select list of sub-advisors to provide Pacific Capital Funds’ shareholders with greater investment opportunities, broader diversification and access to an elite group of institutional money managers:
• | Bankoh Investment Partners, LLC, a joint venture between Bank of Hawaii and Chicago Equity Partners (CEP), serves as sub-adviser to the Pacific Capital Mid-Cap Fund. CEP specializes in core domestic equity markets. |
• | First State Investments International Limited (FSI), which specializes in single-country, regional and sector-specific investments, serves as sub-adviser to the Pacific Capital New Asia Growth Fund. |
• | Hansberger Global Investors Inc. (HGI), founded in 1994 by former Templeton Worldwide President and CEO Thomas L. Hansberger, serves as sub-adviser to the Pacific Capital International Stock Fund. |
• | Nicholas-Applegate Capital Management (NACM), which specializes in both traditional qualitatively-oriented investment portfolios and quantitatively driven strategies for U.S., non-U.S. and global investments, serves as a sub-adviser to the Pacific Capital Small Cap Fund. |
• | Wellington Management Company, LLC (Wellington Management), one of the oldest and largest independent investment management firms in the United States, also serves as a sub-adviser to the Pacific Capital Small Cap Fund. |
Annual Review
The U.S. economy posted solid, healthy growth during the 12-month period between August 1, 2005 and July 31, 2006. Growth varied significantly from quarter to quarter as the economy digested a number of negative impacts including the effects of severe Gulf Coast hurricanes, historically high energy prices and rising interest rates. Gross Domestic Product1 (GDP) grew at an annualized rate of 1.8% during the fourth calendar quarter of 2005, expanded at a rate of 5.6% during the first calendar quarter of 2006, and posted 2.5% annualized growth during the following three months.
GDP growth reflected impressive resilience in the U.S. economy. Energy prices climbed during much of the period, creating a drag on consumer spending as Americans paid higher prices for gasoline and utilities. During recent years, consumers were able to offset higher energy prices by tapping home equity, but rising interest rates and a cooling real estate market have slowed that trend. Meanwhile, a healthy employment environment helped prevent large declines in consumer spending, and solid corporate spending buoyed the economy.
At the same time, economic growth and higher energy prices contributed to greater inflationary pressure. In response, the Federal Reserve Board (the “Fed”) raised short-term interest rates eight times during the 12 months under review, bringing the federal funds rate from 3.25% at the beginning of the period to 5.25% as of July 31, 2006. The Fed received a new chairman during this fiscal year, as Alan Greenspan stepped down and Ben Bernanke assumed leadership of the central bank.
Stocks gain, then fall back
The Standard & Poor’s 500 Index2 gained 5.38% during the 12-month period. Stocks posted strong gains between August and early May as powerful corporate profits, healthy economic growth, moderate inflation and a potential end to interest rate increases encouraged investors to bid up share prices. Investors favored relatively volatile types of equities during the first nine months of the period: Small- and mid-cap shares led the rally in domestic markets, while powerful gains in emerging markets helped foreign stocks outperform U.S. equities. Those developments continued long-standing trends of superior performance by smaller stocks and foreign equities.
The global stock market experienced a correction that began in early May, as investors worried that signs of rising inflation might lead central bankers to raise interest rates sharply enough to choke off economic growth. Riskier stocks that led the market’s rally during the first nine months of the 12-month period subsequently led a sizable downturn, while larger U.S. equities held up relatively well.
As a result, large stocks modestly outperformed small stocks for the period as a whole. Meanwhile, value-oriented stocks continued a multi-year run of market leadership: The Russell 1000® Value Index3 gained 11.59% during the 12 months through July, while the Russell 1000® Growth Index4 declined 0.76% during the same period. That disparity largely reflected the influence of energy stocks, which led the market by a wide margin and hold greater representation in value indices than in growth indices. Strong returns among Telecommunications and Financials stocks also boosted value relative to growth. Meanwhile Technology and Health Care, which typically represent the two largest sector weightings in growth indices, performed poorly.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232, or visit the Funds’ website at pacificcapitalfunds.com.
1 | Gross Domestic Product is the measure of the market value of the goods and services produced by labor and property in the United States. |
2 | Standard & Poor’s 500 Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
1
Letter to Shareholders (cont.)
Bond yields rise
Interest rate increases by the Fed and the prospect of higher inflation pushed up yields throughout the bond markets during the fiscal year. Yields increased roughly 1.50 percentage points on the six-month Treasury bill, 0.93 points on the two-year Treasury note, and 0.70 points on the 10-year Treasury bond. As bond prices move in the opposite direction of yields, prices on short-term bonds declined the furthest.
That environment led to an inverted yield curve, an unusual phenomenon in which short-term bonds offer more yield than long-term bonds. Short-term bonds’ higher yields helped generate greater total returns than longer-term bonds during the 12-month period, despite a larger decline in prices. Corporate and municipal bonds generally performed in line with Treasury issues, while the spread between yields on mortgage-backed securities and Treasuries increased during the period.
During the period, we made several structural changes to the Pacific Capital Funds’ three taxable bond offerings in order to potentially enhance investors’ risk/reward return, and renamed the funds to reflect their new structures. Specifically, we added allocations to mortgage-backed securities to the Diversified Fixed Income Fund and the Short-Intermediate U.S. Government Securities Fund, and changed the funds’ names to the High Grade Core Fixed Income Fund and the High Grade Short-Intermediate Fixed Income Fund, respectively. In addition, we slightly extended the duration of the Ultra Short Government Fund, now named the U.S. Government Short Fixed Income Fund. We also assigned the three funds new benchmark indices that reflect their new portfolio structures.
A time of transition
We anticipate that economic growth could slow during the coming months, although we do not see a strong chance for a recession. We believe that the stock market may be volatile, as investors recalibrate their expectations for economic and earnings growth. If the economy does slow, the environment may be more challenging for smaller, riskier types of stocks. Conversely, large capitalization stocks, which trailed smaller capitalization stocks during most of this decade, may be poised for superior performance. Bonds also appear likely to be volatile, as investors attempt to gauge the prospect for inflation and future Federal Reserve action.
That said, the economy and stock market’s resilience during the recently ended 12-month period highlights the difficulty of predicting the future of financial markets. This difficulty underscores the importance of maintaining well-diversified portfolios that provide exposure to various types of stocks and bonds, as well as cash. We believe such diversification may help to capitalize on opportunities throughout the financial markets, without causing undue risk that will jeopardize your financial goals.
Thank you for your confidence in Pacific Capital Funds. If you have any questions or would like a Fund prospectus, we encourage you to contact your registered investment professional, call Pacific Capital Funds at (800) 258-9232 or visit our website at www. pacificcapitalfunds.com.
Sincerely, |
![]() |
Tobias M. Martyn |
Senior Executive Vice President & Chief Investment Officer |
Asset Management Group of Bank of Hawaii |
3 | Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
4 | Russell 1000® Growth Index is an unmanaged index that measures the performance of 1000 securities found in the Russell universe with higher price to-book ratios and higher forecasted growth values. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
The foregoing information and opinions are for general information only. The Asset Management Group of Bank of Hawaii does not guarantee the accuracy or completeness, nor assume liability for any loss, which may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sale of any security or offering of individual or personalized investment advice.
NOTICE ABOUT DUPLICATE MAILINGS
In order to reduce expenses of the Pacific Capital Funds incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Pacific Capital Funds may in the future deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. This process, called “householding,” will continue indefinitely unless you instruct us otherwise. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at (800) 258-9232.
2
Pacific Capital New Asia Growth Fund
Investment Style
Regional, multi-cap, growth
Investment Objective
Long-term capital appreciation by investing in a broadly diversified portfolio of companies located in Asia’s developing regions, excluding Japan. Investments are not limited to any size or sector.
Investment Considerations
An investment in this Fund entails the special risks of international investing, including currency exchange fluctuation, government regulations, and the potential for political and economic instability. The Fund’s share price is expected to be more volatile than that of a U.S.-only fund. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Follow active bottom-up investment approach |
• | Invest for absolute versus relative return |
• | Look outside benchmark representation for fresh opportunities |
• | Identify sensibly priced, high-quality companies that exhibit long-term growth potential |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii
Sub-Advised by First State Investments International Limited
• | Founded in 1988, with offices in Sydney, London, Edinburgh, Hong Kong, Singapore and Indonesia |
• | Specializes in single country, regional and sector specific investments |
• | Oversees almost $92 billion in assets |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund gained 15.00% (Class A Shares without sales charge), compared to its benchmark, the MSCI® AC Far East Free Index1 (excluding Japan), which returned 16.47%.
What were the major factors in the market that influenced the Fund’s performance?
The Asia Pacific region was extremely volatile during the three months ended July 31, 2006 with the MSCI® AC Far East Free (excluding Japan) Index down 7.11% in U.S. dollar terms. Markets fell on fears of further monetary tightening in the U.S., China and Japan, a deteriorating outlook for global economic growth, inflationary fears as well as an abatement of risk appetite. The worst performing major market was Taiwan. The decline was driven by concerns in the Banking and Technology sectors, as well as political concerns. For the three months ended July 31, 2006, the Philippines, followed by China, were the strongest markets. China was positive, with robust economic growth leading to rises in domestically focused companies and stronger commodities and energy markets pushing Chinese resource stocks higher.
At the sector level, Energy again outperformed. Oil prices remained strong for the three months ended July 31, 2006, with ongoing concerns about geopolitical risk stemming from Iran’s nuclear program and robust demand coming from global economic strength. Health Care was the worst performing sector on fears of increasing competition in the U.S. generics market. The cyclical Information Technology and Consumer Discretionary sectors were also weak, in part due to growing concern about the strength of global demand, particularly in the U.S. where consumers remain highly leveraged in a less accommodative interest rate environment.
Fund performance was helped by stock selection in Singapore and in the Industrials sector, namely Keppel Corp. and Fraser & Neave. Other notable contributors include IOI Corp., China Resources Enterprise and Korea’s Shinhan Financial.†
Relative performance was hurt by Taiwan holdings Asia Optical, an optical and camera lens manufacturer which suffered after it announced a significant downward revision of its earnings at the start of 2006, and E. Sun Financial Holding which underperformed along with the broader Taiwanese banking sector on concerns over consumer credit defaults. In Hong Kong, our overweight position in power tool company Techtronic Industries and holding chip manufacturer Solomon Systech hurt fund returns. Elsewhere, South Korea’s LG Corp. detracted from Fund returns as the company reduced its profit forecast for the second quarter due to expectations of price declines for fl at screen panels after seasonal demand from the FIFA World Cup.†
What major changes have occurred in the portfolio during the period covered by the report?
No major changes occurred in the Fund for this period. We remained overweight in domestic consumption stocks and underweight most cyclical sectors including Materials and Information Technology.†
What is your outlook for the Fund?
We remain optimistic about the long-term outlook for the Asia Pacific region in absolute and, even more so, in relative terms. A cocktail of favorable demographics, a generally stable political background, sound fiscal/monetary policies, competitive cost structures and
Past performance does not guarantee future results.
1 | The Morgan Stanley Capital International (MSCI®) All Country (AC) Far East Free Index (excluding Japan) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the Far East, excluding Japan. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
† | The composition of the Fund’s portfolio is subject to change. |
3
Pacific Capital New Asia Growth Fund (cont.)
rapidly expanding domestic consumption is a powerful one. More specifically the developed world continues to outsource its manufacturing to Asia, most notably to China; outsourcing in service industries has also become more commonplace, with India being the main beneficiary.
We believe that our emphasis on quality, in terms of management, franchise and financials, will stand us in good stead if markets prove to be less robust than has recently been the case. Over the last couple of months markets have taken a long overdue breather. Although a generally indiscriminate retreat, valuations in certain areas are consequently proving more tempting than before—especially if underlying fundamentals do not deteriorate. While we are gently nibbling at derated stocks in some areas, we are not entirely convinced that a rebound will be sustained.
Past performance does not guarantee future results.
† | The composition of the Fund’s portfolio is subject to change. |
4
Pacific Capital New Asia Growth Fund (cont.)
Country Weightings as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | 8.96 | % | 20.66 | % | 12.78 | % | 5.78 | % | ||||
Class B Shares** | 10.05 | % | 21.26 | % | 13.14 | % | 4.61 | % | ||||
Class C Shares** | 13.08 | % | 21.97 | % | 13.28 | % | 5.75 | % | ||||
Class Y Shares | 15.26 | % | 23.15 | % | 14.31 | % | 6.61 | % |
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services. First State Investments International Limited is sub-advisor to the Fund and is paid a fee for its services.
Class B and Class C shares of the Fund commenced operations on March 2, 1998 and April 30, 2004, respectively. Performance information for Class C shares is based upon the performance of Class B shares from inception. Performance calculated for any period up to and through March 2, 1998 is based upon the performance of Class A shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital New Asia Growth Fund is measured against the MSCI® AC Far East Free ex Japan Index, which is an unmanaged free float-adjusted market capitalization index that is designed to measure equity market performance in the Far East, excluding Japan. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
5
Pacific Capital International Stock Fund
Investment Style
International, multi-cap, blend
Investment Objective
Long-term capital appreciation by investing in a broadly diversified portfolio of companies domiciled outside the United States. Investments are not limited to any particular type or size of company or to any region of the world, including emerging markets countries.
Investment Considerations
An investment in this Fund entails the special risks of international investing, including currency exchange fluctuation, government regulations, and the potential for political and economic instability. The Fund’s share price is expected to be more volatile than that of a U.S.-only fund. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Style neutral growth and value discipline |
• | 50% managed by growth team—50% managed by value team |
• | Disciplined bottom-up stock selection |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii
Sub-Advised by Hansberger Global Investors, Inc.
• | Founded in 1994 by Thomas L. Hansberger, former President and CEO of Templeton Worldwide |
• | Headquartered in Ft. Lauderdale, Florida, with satellite offices in Hong Kong, Moscow, Toronto and Mumbai |
• | 23 investment professionals, 18 nationalities |
• | $8.3 billion in assets under management |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund underperformed its benchmark, the MSCI® ACWI ex US Index1. The Fund (Class A shares without sales charge) was up 21.65%, while the MSCI® ACWI ex US Index was up 25.10%.
What were the major factors in the market that influenced the Fund’s performance?
The largest factors influencing the Fund’s performance relative to the benchmark were:
The Fund’s average 2.3% cash level had a negative impact on performance during this strong up-market.†
The Fund’s United Kingdom holdings underperformed the MSCI® United Kingdom Index, 16.0% to 22.1%.†
Holding a different mix of currencies than the benchmark had a small negative net effect. The largest impact came from the Fund’s 3.2% underweighting to the Canadian dollar. An average 1.2% overweighting to the Brazilian real helped the portfolio.†
What major changes have occurred in the portfolio during the period covered by the report?
On an absolute basis, the largest changes in the regional weights were a 2.6% increase in Japan and a 2.7% decrease in Europe ex UK. From a sector perspective, the Fund’s largest absolute weighting changes were a 3.8% decrease in Industrials and a 3.1% increase in Materials.†
Relative to the benchmark, the Fund’s United Kingdom weight increased 2.2% while the Emerging Markets weight decreased 2.3%. From a sector perspective, the Industrials relative weighting decreased by 4.2% while the Consumer Discretionary relative weighting increased by 2.3%.†
What is your outlook for the Fund?
We anticipate that global equity markets will continue to be volatile during the second half of this year as investors monitor the progression of high energy and commodity prices, inflation and interest rates around the world. However, we remain optimistic about investing in international equities where we believe there are some economic bright spots. Gross Domestic Product2 (GDP) forecasts have recently been upgraded for Canada and Switzerland, Japan’s economy may benefit from expanding export and domestic demand and many emerging markets are estimated to post stable GDP growth. Global growth has continued to be positive and corporate balance sheets have remained relatively strong. Inflation and interest rates have remained at relatively low levels, albeit higher than in previous quarters.
We believe that the initial indications of a slowing U.S. consumer and U.S. housing market may cause negative, wide reaching implications for both companies exposed directly to these sector fundamentals, and regions and countries that rely on this growth as a destination for their exports. In general, we believe that international markets may continue to trade at attractive valuation levels versus that of the U.S. We believe that volatility in the marketplace coincides with investors’ flight-to-quality, and the Fund could benefit from its bias towards large capitalization stocks.
Past performance does not guarantee future results.
1 | The Morgan Stanley Capital International (MSCI®) All Country World (ACWI) ex US is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets outside the U.S. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
2 | Gross Domestic Product (GDP) is the measure of the market value of the goods and services produced by labor and property. |
† | The composition of the Fund’s portfolio is subject to change. |
6
Pacific Capital International Stock Fund (cont.)
Country Weightings as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | Since Inception (12/2/98) | |||||||||
Class A Shares* | 15.21 | % | 17.00 | % | 4.90 | % | 3.87 | % | ||||
Class B Shares** | 16.63 | % | 17.52 | % | 5.21 | % | 3.89 | % | ||||
Class C Shares** | 19.78 | % | 18.24 | % | 5.38 | % | 3.89 | % | ||||
Class Y Shares | 21.90 | % | 19.43 | % | 6.45 | % | 4.92 | % |
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services. Hansberger Global Investors, Inc. is sub-advisor to the Fund and is paid a fee for its services. The Pacific Capital International Stock Fund’s inception date was December 2, 1998. Class A Shares were not in existence prior to December 8, 1998. Performance calculated for any period up to and through December 8, 1998, is based upon the performance of Class Y Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
Class B and Class C shares were not in existence prior to December 20, 1998 and April 30, 2004, respectively. Performance information for Class C shares is based upon the performance of Class B shares from inception. Performance calculated for any period up to and through such inception dates is based upon the performance of Class Y shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital International Stock Fund is measured against the MSCI® ACWI ex US Index, an unmanaged index which is designed to measure equity market performance in the global developed and emerging markets outside the U.S. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
7
Pacific Capital Small Cap Fund
Investment Style
Domestic, small-cap, blend
Investment Objective
Long-term capital appreciation by investing in a diversified portfolio of small-capitalization companies.
Investment Considerations
Small-capitalization stocks typically carry additional risk, since smaller companies generally have a higher risk of failure and have experienced a greater degree of volatility than larger companies. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
Nicholas-Applegate Capital Management
• | Small cap value strategy: Applies a classic bottom-up investment process to identify undervalued companies with underlying financial strength that are undergoing positive change |
• | Systematic small cap strategy: Emphasizes a quantitative stock-selection approach to identify companies with sustainable growth characteristics and timely market recognition |
Wellington Management Company
• | Small cap growth intersection strategy: Combines fundamental research with quantitative valuation techniques in a disciplined framework to assess investment attractiveness |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii
Sub-Advised by Nicholas-Applegate Capital Management
• | Founded in 1984, NACM employs 50 investment professionals |
• | Specializes in both traditional qualitatively-oriented investment portfolios and quantitavily driven strategies for U.S., non-U.S. and global investments |
• | $13.6 billion in assets under management |
Sub-Advised by Wellington Management Company LLC
• | Founded in 1979 and based in Boston |
• | The firm has U.S. offices in Atlanta, Radnor (Pennsylvania), Chicago and San Francisco, with affiliate offices in London, Singapore, Sydney, Tokyo and Hong Kong |
• | $529 billion in assets under management |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund gained 4.97% (Class A Shares without sales charge), compared to the Fund’s benchmarks, the Russell 2000® Index1 and the Russell 2000® Value Index2, which returned 4.24% and 6.93%, respectively.
What were the major factors in the market that influenced the Fund’s performance?
The U.S. economy displayed impressive resilience during the 12-months to July 31, 2006. Although a devastating hurricane season and record energy prices rattled equity markets early in the fiscal year, share prices quickly recovered, supported by ongoing strength in corporate earnings. At the Federal Reserve there was a change of guard, but no change in monetary policy. On January 31, Alan Greenspan was replaced by Ben Bernanke as chairman of the U.S. central bank. In efforts to stymie heightened inflation concerns, Mr. Greenspan and Mr. Bernanke hiked the federal funds rate eight times, to a 5-year high 5.25% at year-end. Policy tightening was one factor driving the outperformance of large-cap stocks versus small-cap stocks in the final months of the year. In general, small companies have higher financing costs than large companies, and are thus more sensitive to rising interest rates.
What major changes have occurred in the portfolio during the period covered by the report?
Effective June 16, 2006, the Fund employes a “multi-manager” approach whereby portions of the Fund’s assets are allocated among different investment sub-advisers who employ distinct investment styles intended to complement one another. The Adviser has selected two different asset managers for the day-to-day portfolio management of the Fund: Nicholas-Applegate Capital Management (“NACM”) and Wellington Management Company, LLP (“Wellington Management”). Each sub-adviser acts independently of the other and uses its own methodology for selecting investments.
NACM - Small Cap Value
There were no major changes in the portfolio during the period. Sector weightings were decreased in Health Care and Financials, and weightings in Information Technology and Materials were increased. Representative new buys include Quanex Corp. and Commercial Metals in Materials, as well as TNS, Inc. and Intergraph Corp. in Information Technology. Representative sells include Highland Hospitality and Cash America International in Financials, and Lifepoint Hospitals and CV Therapeutics in Health Care.†
NACM - Systematic Small Cap
There were no major changes in the portfolio during the period. During the period, there were minor changes in sector weights relative to the benchmark driven by the stock selection model utilized in this portion of the portfolio. Sector weights were decreased in Energy, Health Care and Information Technology and were increased in Industrials and Materials. Representative new buys include Avocent Corp. in Technology, as well as Steel Technologies in Materials and WESCO International in Industrials. Representative sells include Intermec Inc. in Information Technology, ViroPharma Inc. in Health Care, and Swift Energy Company in the Energy sector.† All buys and sells in the portfolio are driven by a quantitative
Past performance does not guarantee future results.
The Russell 2000® Index has replaced the Fund’s prior benchmark to better reflect the Fund’s investment strategy.
1 | The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
2 | The Russell 2000® Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
† | The composition of the Fund’s portfolio is subject to change. |
8
Pacific Capital Small Cap Fund (cont.)
stock selection model based on each position’s relative attractiveness and contribution to risk in relation to existing portfolio holdings.
Wellington Management – Small Cap Growth Intersection
The portfolio was funded on June 16, 2006. All changes in the portfolio are driven by bottom-up fundamental and quantitative research rather than sector-level, top-down views. During the period the largest new purchases included Varian, which engages in the development, marketing, and servicing of scientific instruments and vacuum products, and IHOP, which develops and franchises the International House of Pancakes restaurants in the United States. Our largest eliminations included insurance companies Scottish Re and Zenith National.†
What is your outlook for the Fund?
Preliminary reports indicate U.S. GDP3 growth decelerated from 5.6% in the first quarter to 2.5% in the second quarter, on weaker consumer spending, residential investment and business investment. Corporate profits in the U.S. have remained robust. As always, risks exist. Excluding volatile energy and food costs, consumer prices in the U.S. increased 0.3% for the fourth month in a row in June. Reuters reports core inflation is up 2.6% in the past 12 months, 3.2% (annualized) over the past six months, and 3.6% (annualized) in the last three months. Record-high oil prices, at $78.40/bbl on July 14, may exacerbate downstream price pressures, while war in the Middle East could generate increased volatility. We believe the diversification of management styles among small cap value, core, and growth mandates leaves the Fund well positioned to capitalize on the changing market environment.†
3 | Gross Domestic Product is the measure of the market value of the goods and services produced by labor and property in the United States. |
9
Pacific Capital Small Cap Fund (cont.)
Sector Weightings as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | Since Inception (12/3/98) | |||||||||
Class A Shares* | -0.53 | % | 17.54 | % | 14.49 | % | 15.36 | % | ||||
Class B Shares** | 0.28 | % | 18.02 | % | 14.77 | % | 15.29 | % | ||||
Class C Shares** | 3.23 | % | 18.75 | % | 14.89 | % | 15.30 | % | ||||
Class Y Shares | 5.26 | % | 19.95 | % | 16.03 | % | 16.43 | % |
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at Pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services. Nicholas-Applegate Capital Management is sub-advisor for a portion of the Fund’s assets and is paid a fee for its services. Wellington Management Company, LLC is a sub-advisor for a portion of the Fund’s assets and is paid a fee for its services.
The Pacific Capital Small Cap Fund’s inception date was December 3, 1998. Class A, Class B and Class C shares were not in existence prior to December 8, 1998, December 20, 1998 and April 30, 2004, respectively. Performance information for Class C shares is based upon the performance of Class B shares from inception. Performance calculated for any period up to and through such inception dates is based upon the performance of Class Y shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital Small Cap Fund is measured against the Russell 2000® Value Index and the Russell® 2000 Index. The Fund has changed its standardized benchmark from the Russell 2000® Value Index to the Russell 2000® Index to better reflect the Fund’s investment strategy. The Russell 2000® Value Index is comprised of securities in the Russell 2000® Index with a less-than-average growth orientation. The Russell 2000® Index is comprised of the 2,000 smallest companies in the Russell 3000® Index. These indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
10
Pacific Capital Mid-Cap Fund
Investment Style
Domestic, mid-cap, blend
Investment Objective
Long-term capital appreciation by investing in a diversified portfolio of mid-capitalization companies—up to $12.3 billion as of September 30, 2005—the sub-advisor believes are reasonably priced, fundamentally strong and exhibit better growth expectations relative to peers.
Investment Considerations
Mid-capitalization stocks typically carry additional risk, since smaller companies generally have a higher risk of failure and have experienced a greater degree of volatility than larger companies. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Quantitative research analysis with fundamental research overlay |
• | Quantitative analysts use proprietary screen to evaluate expectations, valuation and quality of 3,000 stocks |
• | Fundamental analysts identify factors not included in the screen to determine most attractive stocks |
• | Portfolio construction emphasizes stock selection and seeks to neutralize risk elements that are not consistently rewarded |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii
Sub-Advised by Bankoh Investment Partners, LLC, a joint venture between Bank of Hawaii and Chicago Equity Partners (CEP)
• | Founded in 1989, CEP specializes in core domestic equity markets |
• | CEP investment management team averages 17 year experience |
• | CEP currently oversees $10.9 billion in assets |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund underperformed its benchmark, the S&P MidCap 400 Index1. The Fund produced a total return of 1.78% (Class A Shares without sales charge), compared to the S&P MidCap 400 Index which returned 4.28% for the same period.
What were the major factors in the market that influenced the Fund’s performance?
Our investment philosophy is to outperform by building portfolios of companies with stronger fundamentals than the benchmark. These fundamentals can be described in three groups: momentum–company and stock growth, value–attractively priced relative to peers, and quality–clean balance sheets. The performance of the Fund will suffer on a relative basis during periods when only one of these factor groups is driving the majority of market performance. Over the last 12 months, stocks with only momentum characteristics generated a majority of excess return in the market. Although the portfolio had exposure to this factor, there was also positive exposure to the value and quality factors. During the period, investing in stocks with value characteristics lead to negative returns. Stocks with quality characteristics were flat from the beginning of the period until the last four months when returns became positive.†
What major changes have occurred in the portfolio during the period covered by the report?
No major changes have occured in the portfolio other than typical rebalancing.
What is your outlook for the Fund?
Given an expected slow down in the economy over the next 12 months, we believe the market may continue to reward companies with positive momentum and quality characteristics. In momentum, we anticipate the focus will be less on price momentum and more on the companies whose earnings are slowing faster than expected. Overall, our philosophy will not change based on short-term trends or conditions in the market. Our goal is to add value through security selection, while attempting to neutralize other risk factors, such as market timing and sector rotation, for which there is no adequate compensation by the market.†
Past performance does not guarantee future results.
1 | The S&P MidCap 400 Index is a market capitalization-weighted index of 400 medium capitalization stocks. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
† | The composition of the Fund’s portfolio is subject to change. |
11
Pacific Capital Mid-Cap Fund (cont.)
Sector Weightings as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | Since Inception (12/30/03) | |||||
Class A Shares* | -3.58 | % | 8.51 | % | ||
Class C Shares** | 0.12 | % | 10.11 | % | ||
Class Y Shares | 2.06 | % | 11.05 | % |
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 1.00% (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at Pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services. Bankoh Investment Partners, LLC, is sub-advisor to the Fund and is paid a fee for its services.
The Pacific Capital Mid-Cap Fund’s inception date was December 30, 2003. The Class C shares were not in existence until April 30, 2004. Performance calculated for any period up to and through April 30, 2004, is based upon the performance of Class A shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital Mid-Cap Fund is measured against the S&P MidCap 400 Index, an unmanaged market capitalization-weighted index of 400 medium capitalization stocks. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
12
Pacific Capital Growth Stock Fund
Investment Style
Domestic, large-cap, growth
Investment Objective
Long-term capital appreciation by investing in a diversified portfolio of large-capitalization companies—greater than $1 billion—whose earnings are expected to grow faster than the average for the U.S. market.
Investment Considerations
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Top-down macroeconomic analysis of sector trends |
• | Bottom-up fundamental research to identify attractive stocks |
• | Quantitative research analysis |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii (AMG)
• | AMG represents the largest, most experienced group of investment professionals in Hawaii |
• | AMG manages $4.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund produced a -3.11% total return (Class A Shares without sales charge), compared to its benchmark, the Russell 1000® Growth Index1, which returned -0.76%.
What were the major factors in the market that influenced the Fund’s performance?
The optimistic atmosphere that prevailed in the stock market during the first three quarters of the fiscal year turned into despair in the fourth quarter. Equity markets throughout the world plummeted in mid-May through early June on fears that escalating inflationary pressures would force the Fed to raise short-term interest rates above previously expected levels. Investors worried that this could threaten the nation’s economic expansion, particularly in consumer related areas such as housing, automobiles and retailing. In this anxiety filled atmosphere, investors fl ed from riskier segments of the stock market into those perceived as safe. Mid- and small-capitalization stocks were heavily liquidated, especially those in the Technology, Healthcare and Consumer Discretionary sectors. Meanwhile, money fl owed into larger capitalization stocks, particularly in the Utilities, Energy and Consumer Staples sectors.
Relative to its benchmark, the Fund was positioned more heavily in smaller, more volatile, higher growth companies which were particularly vulnerable to selling as the market came under pressure. During the fourth quarter, our stock selection was weakest in the Consumer Discretionary, Healthcare and Technology sectors which were also the weakest segments of the overall market. While our stock selection was successful in the Financial, Industrials and Materials sectors, it was not sufficient to offset the areas of weakness.†
What major changes have occurred in the portfolio during the period covered by the report?
Towards the end of the year, it became increasingly apparent that the economy’s rate of growth was slowing. This was particularly noticeable in the housing and consumer sectors. To better position the portfolio to perform well in an environment in which growth may continue to feel the dual pressures of higher commodity prices and short-term interest rates, we are placing a greater emphasis on larger, more stable companies that may be able to weather a slowing of the economy better than some of their smaller brethren.†
What is your outlook for the Fund?
During the fourth quarter, large market capitalization stocks performed substantially better than smaller ones. However, with fear dominating trading activity it is unclear to us whether a sustainable rotation into large market capitalization issues is under way. For the time being though, we believe large-capitalization stocks seem to have the upper hand given the decidedly more cautious tone of corporate earnings guidance in recent weeks combined with economic reports suggestive of decelerating growth.†
We believe that the stock market may remain choppy over the next few months as investors recalibrate their expectations for economic growth. We think that the stock market may regain its footing and trend upwards sometime before the end of the year. With its more conservative positioning, we believe that the Fund is positioned to perform well in an environment of moderating growth.†
Past performance does not guarantee future results.
1 | The Russell 1000® Growth Index is an unmanaged index that measures the performance of 1,000 securities found in the Russell universe with higher price-to-book ratios and higher forecasted growth values. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
† | The composition of the Fund’s portfolio is subject to change. |
13
Pacific Capital Growth Stock Fund (cont.)
Sector Weightings as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -8.20 | % | 1.59 | % | -4.92 | % | 5.01 | % | ||||
Class B Shares** | -7.77 | % | 1.69 | % | -4.78 | % | 4.97 | % | ||||
Class C Shares** | -4.77 | % | 2.70 | % | -4.56 | % | 4.96 | % | ||||
Class Y Shares | -2.91 | % | 3.67 | % | -3.63 | % | 5.86 | % |
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at Pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services.
Class B and Class C shares of the Fund commenced operations on March 2, 1998 and April 30, 2004, respectively. Performance information for Class C shares is based upon the performance of Class B shares from inception. Performance calculated for any period up to and through March 2, 1998 is based upon the performance of Class A shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital Growth Stock Fund is measured against the Russell 1000® Growth Index, an unmanaged index which measures the performance of 1,000 securities found in the Russell universe with higher price-to-book ratios and higher forecasted growth values. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
14
Pacific Capital Growth and Income Fund
Investment Style
Domestic, large-cap, blend
Investment Objective
Long-term capital appreciation and current income by investing in a diversified portfolio of large-capitalization dividend-paying companies—currently greater than $1 billion—whose earnings are expected to grow at above-average rates in relation to industry peers.
Investment Considerations
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Top-down macroeconomic analysis of sector trends |
• | Bottom-up fundamental research to identify attractive stocks |
• | Quantitative research analysis |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii (AMG)
• | AMG represents the largest, most experienced group of investment professionals in Hawaii |
• | AMG manages $ 4.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $ 2.4 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund gained 0.28% (Class A Shares without sales charge), compared to its benchmark, the S&P 5001, which returned 5.38%.
What were the major factors in the market that influenced the Fund’s performance?
The optimistic atmosphere that prevailed in the stock market during the first three quarters of the fiscal year turned into despair in the fourth quarter. Equity markets throughout the world plummeted in mid-May through early June on fears that escalating inflationary pressures would force the Fed to raise short-term interest rates above previously expected levels. Investors worried that this could threaten the nation’s economic expansion, particularly in consumer related areas such as housing, automobiles and retailing. In this anxiety filled atmosphere, investors fled from riskier segments of the stock market into those perceived as safe. Mid- and small-capitalization stocks were heavily liquidated especially those in the Technology, Healthcare and Consumer Discretionary sectors. Meanwhile, money flowed into larger capitalization stocks, particularly in the Utilities, Energy and Consumer Staples sectors.
The Fund underperformed its benchmark during the year primarily because of its relatively aggressive positioning going into the fourth quarter. Relative to its benchmark, the Fund was positioned more heavily in smaller, more volatile, higher growth companies which were particularly vulnerable to selling as the market came under pressure. During the fourth quarter, our stock selection was weakest in the Consumer, Healthcare and Technology sectors which were also the weakest segments of the overall market. While our stock selection was successful in the Financial, Industrials, Energy, and Materials sectors, it was not sufficient to offset the areas of weakness.†
What major changes have occurred in the portfolio during the period covered by the report?
Towards the end of the year, it became increasingly apparent that the economy’s rate of growth was slowing. This was particularly noticeable in the housing and consumer sectors. To better position the portfolio to perform well in an environment in which growth may continue to feel the dual pressures of higher commodity prices and short-term interest rates, we are placing a greater emphasis on larger, more stable companies that may be able to weather a slowing of the economy better than some of their smaller brethren.†
What is your outlook for the Fund?
During the fourth quarter, large market capitalization stocks performed substantially better than smaller ones. However, with fear dominating trading activity it is unclear to us whether a sustainable rotation into large market capitalization issues is under way. For the time being though, we believe large-capitalization stocks seem to have the upper hand given the decidedly more cautious tone of corporate earnings guidance in recent weeks combined with economic reports suggestive of decelerating growth.†
We believe that the stock market may remain choppy over the next few months as investors recalibrate their expectations for economic growth. We think that the stock market may regain its footing and trend upwards sometime before the end of the year. With its more conservative positioning, we believe that the Fund is positioned to perform well in an environment of moderating growth.†
Past performance does not guarantee future results.
1 | The Standard & Poor’s 500 Index (S&P 500) is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
† | The composition of the Fund’s portfolio is subject to change. |
15
Pacific Capital Growth and Income Fund (cont.)
Sector Weightings as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -5.00 | % | 5.99 | % | -1.70 | % | 5.98 | % | ||||
Class B Shares** | -4.46 | % | 6.21 | % | -1.57 | % | 5.90 | % | ||||
Class C Shares** | -1.47 | % | 7.12 | % | -1.36 | % | 5.87 | % | ||||
Class Y Shares | 0.52 | % | 8.18 | % | -0.39 | % | 6.79 | % |
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at Pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services.
Class B and Class C shares of the Fund commenced operations on March 2, 1998 and April 30, 2004, respectively. Performance information for Class C shares is based upon the performance of Class B shares from inception. Performance calculated for any period up to and through March 2, 1998 is based upon the performance of Class A shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital Growth and Income Fund is measured against the S&P 500 Index, an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
16
Pacific Capital Value Fund
Investment Style
Domestic, large-cap, value
Investment Objective
Long-term capital appreciation by investing in a diversified portfolio of large-capitalization companies – greater than $1 billion – believed to be undervalued.
Investment Considerations
Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Top-down macroeconomic analysis of sector trends |
• | Bottom-up fundamental research to identify attractive stocks |
• | Quantitative research analysis |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii (AMG)
• | AMG represents the largest, most experienced group of investment professionals in Hawaii |
• | AMG manages $4.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund gained 9.39% (Class A Shares without sales charge), compared to its benchmark, the Russell 1000® Value Index1, which returned 11.59%.
What were the major factors in the market that influenced the Fund’s performance?
After falling early last autumn, the stock market advanced sharply through early May, bolstered by continuing economic expansion and solid corporate earnings gains. Smaller capitalization along with higher beta2 issues led the advance. However, equity markets throughout the world plummeted in mid-May through early June on fears that escalating inflationary pressures would force the Fed to raise short-term interest rates above previously expected levels. Investors worried that this could threaten the nation’s economic expansion. Larger capitalization stocks outperformed smaller capitalization equities during this time.
The Fund’s underperformance relative to its Russell 1000® Value benchmark was concentrated in two periods. In the early fall of 2005, the Fund was underweight in the Financial sector, which rallied sharply on hopes that interest rate increases were ending. Consequently, Fund returns trailed that of the benchmark during October and November. The second period of underperformance occurred with the mid-May market correction, in which smaller capitalization and higher beta stocks that were more heavily weighted in the Fund corrected more severely than the larger capitalization stocks.†
What major changes have occurred in the portfolio during the period covered by the report?
Over the past 12 months, the Financial, Utilities and Consumer Staples sector weightings were increased, while those in the Consumer Discretionary and Industrial areas were decreased. The market capitalization of the Fund was also increased while its market beta was decreased.†
What is your outlook for the Fund?
We believe there are signs of change in leadership from late cycle to early cycle sectors and a shift to larger cap issues. We feel that the evidence will become definitive over the next few months. Even though we favor typical beneficiaries of a mid cycle economic slowdown, such as the Financials and Consumer Staples, the overextended nature of the housing market during the last several years makes us cautious with respect to the housing, mortgage and discretionary areas of the market.†
We believe that the stock market may remain choppy over the next few months, as investors recalibrate expectations for economic growth. Should this occur, we believe that healthy corporate earnings growth could continue and the stock market could regain its footing and trend upwards before the end of the year.
Past performance does not guarantee future results.
1 | The Russell 1000® Value Index measures the performance of those Russell 1000® companies with lower price-to-book ratios and lower forecasted growth values. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
2 | Beta is a coefficient measuring a stock’s relative volatility. |
† | The composition of the Fund’s portfolio is subject to change. |
17
Pacific Capital Value Fund (cont.)
Sector Weightings as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | Since Inception (12/3/98) | |||||||||
Class A Shares* | 3.61 | % | 12.11 | % | 2.92 | % | 3.43 | % | ||||
Class B Shares** | 4.57 | % | 12.53 | % | 3.07 | % | 3.39 | % | ||||
Class C Shares** | 7.57 | % | 13.35 | % | 3.27 | % | 3.40 | % | ||||
Class Y Shares | 9.64 | % | 14.44 | % | 4.29 | % | 4.42 | % |
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at Pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services.
The Pacific Capital Value Fund’s inception date was December 3, 1998. The Class A, Class B and Class C shares were not in existence prior to December 8, 1998, December 13, 1998 and April 30, 2004, respectively. Performance information for Class C shares is based upon the performance of Class B shares from inception. Performance calculated for any period up to and through such inception dates is based upon the performance of Class Y shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital Value Fund is measured against the Russell 1000® Value Index, an unmanaged index which measures the performance of those Russell 1000® companies with lower price-to-book and lower forecasted growth values. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
18
Pacific Capital High Grade Core Fixed Income Fund
(Formerly the Diversified Fixed Income Fund)
Investment Style
High-quality, intermediate-term, taxable
Investment Objective
High current income consistent with capital preservation by investing at least 80% in fixed income securities, with most of its assets in debt securities issued or guaranteed by the U.S. Government or corporate debt securities rated “A” or better by Standard and Poor’s.
Investment Considerations
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Generally, bond prices fall when interest rates rise, and vice versa. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
Investment Process
• | Top-down macroeconomic analysis of interest rate trends |
• | Bottom-up credit research to identify high quality bonds |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii (AMG)
• | AMG represents the largest, most experienced group of investment professionals in Hawaii |
• | AMG manages $4.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund returned 0.29% (Class A Shares without sales charge), compared to its benchmarks, the Merrill Lynch Domestic Master Index1 and the Merrill Lynch Government/Corporate Master Index2, which returned 1.45% and 1.01% respectively.
What were the major factors in the market that influenced the Fund’s performance?
During the 12-month period, rates rose, with 5- to 30-year maturities increasing by 0.6-0.8% and shorter rates increasing by about 1.5%. Shorter rates rose in step with the Federal Reserve raising the fed funds rate by 2%, in eight consecutive moves of 0.25%.
The 10-year Treasury rate was volatile over the last 12 months, declining to 4% at the end of August 2005, peaking near 5.25% in mid-May and peaking again at the end of June 2006. Subsequently, that rate has fallen to about 4.8%.
Higher rates have resulted in higher income to the Fund’s shareholders. The dividend per share increased by about 10% during the year. Our positions in floating rate securities served a dual purpose during the period: income increased in step with increasing short-term rates and prices remained stable on these instruments.†
The same factors that influenced the markets during the previous year (ended July 2005) continued to impact the securities markets. Oil prices continued to rise and investors worried about inflation and how far the Fed would go in raising rates. This made for a volatile market, with opportunities in sector and maturity selection. Towards the end of the fiscal period (June-July, 2006) there was a decided flight-to-quality as economic statistics began to show evidence of a slowing economy, especially in the housing sector. This is an important statistic because housing has been the economy’s high octane over the last few years.
The Fund underperformed its benchmark index, the Merrill Lynch Domestic Master Index, because of Fund expenses which are not included in the index return.†
While we continue to emphasize quality in our portfolios, there have been opportunities to add incremental income and performance to the Fund by taking advantage oversold situations, where lower investment grade (BBB rated) issuers were purchased at attractive levels.
What major changes have occurred in the portfolio during the period covered by the report?
The most significant change to the Fund’s composition has been the addition of mortgage-backed bonds to the portfolio. We view this sector as being attractive versus corporate bonds whose incremental yield spread is at historically narrow levels. This change commenced during June of 2006, and in the ensuing period mortgage-backed securities have outperformed Treasuries and most corporate bond sectors.†
What is your outlook for the Fund?
We believe that more moderate economic growth could result in lower bond yields and favorable returns for bonds in the next couple of quarters. We expect that the Fed’s eight increases of short rates have started to take a bite out of economy activity. We anticipate that the Fed has finished raising rates and may hold steady for several quarters, and that foreign investors will continue to purchase U.S. bonds across all sectors. We believe that these factors could bode well for bond portfolios for the next couple of quarters.
Past performance does not guarantee future results.
The Merrill Lynch Domestic Master Index has replaced the Fund’s prior benchmark to better reflect the Fund’s investment strategy.
1 | The Merrill Lynch Domestic Master Index is a broad-based index which measures the total rate of return performance of the U.S. investment-grade bond market. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
2 | The Merrill Lynch Government/Corporate Master Index is generally representative of the performance of corporate and U.S. Government bonds. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
† | The composition of the Fund’s portfolio is subject to change. |
19
Pacific Capital High Grade Core Fixed Income Fund (cont.)
(Formerly the Diversified Fixed Income Fund)
Portfolio Composition as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -3.73 | % | 1.08 | % | 3.39 | % | 5.07 | % | ||||
Class B Shares** | -4.30 | % | 0.79 | % | 3.29 | % | 4.90 | % | ||||
Class C Shares** | -1.42 | % | 1.70 | % | 3.46 | % | 4.87 | % | ||||
Class Y Shares | 0.45 | % | 2.68 | % | 4.46 | % | 5.74 | % |
* | Reflects 4.00% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at Pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services.
Class B and Class C shares of the Fund commenced operations on March 2, 1998 and April 30, 2004, respectively. Performance information for Class C shares is based upon the performance of Class B shares from inception. Performance calculated for any period up to and through March 2, 1998 is based upon the performance of Class A shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital High Grade Core Fixed Income Fund is measured against the Merrill Lynch Government/Corporate Master Index and the Merrill Lynch Domestic Master Index. The Fund has changed its standardized benchmark from the Merrill Lynch Government/ Corporate Master Index to the Merrill Lynch Domestic Master Index to better reflect the Fund’s investment strategy. The Merrill Lynch Domestic Master Index is a broad-based index which measures the total rate of return performance of the U.S. investment-grade bond market. The Merrill Lynch Government/Corporate Master Index is generally representative of the performance of corporate and U.S. Government bonds. The indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
20
Pacific Capital Tax Free Securities Fund
Investment Style
High-quality, intermediate-term, tax-exempt
Investment Objective
High level of tax-exempt income by investing at least 80% in debt securities exempt from federal income tax and alternative minimum tax, with 50% to 60% in Hawaii municipal obligations exempt from Hawaii state tax.
Investment Considerations
Income received from the Fund may be subject to certain state and local taxes and, depending on one’s tax status, to the federal alternative minimum tax. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Generally, bond prices and values fall when interest rates rise, and vice versa. The longer the average maturity of the Fund’s portfolio, the greater the fluctuation in value. Since the Fund invests significantly in securities of issuers in Hawaii, it will also be affected by a variety of Hawaii’s economic and political factors.
Investment Process
• | Top-down macroeconomic analysis of interest rate trends |
• | Bottom-up credit research to identify high quality bonds |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii (AMG)
• | AMG represents the largest, most experienced group of investment professionals in Hawaii |
• | AMG manages $4.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund gained 1.19% (Class A Shares without sales charge), compared to its benchmark, the Lehman Brothers Municipal Hawaii Bond Index1, which returned 2.32%.
What were the major factors in the market that influenced the Fund’s performance?
The Federal Reserve continued to tighten short rates, raising the Federal Funds rate to 5.25% at the end of the period. The municipal yield curve rose during the quarter, with 2, 10 and 20-year rates increasing by 6, 10 and 3 basis points (0.06%, 0.10% and 0.03%), respectively.
The performance of the Fund was behind the benchmark for the period. We had a difficult month of June as rates spiked higher than we anticipated after we had extended the duration of the portfolio. Since then, rates have come down more in line with our expectations and we made up some ground in July and expect to in August as well.†
What major changes have occurred in the portfolio during the period covered by the report?
We changed the Fund’s strategy from being short of the benchmark duration to being long the benchmark duration.
The best tool we used to perform this function was to purchase long duration, non-callable zero coupon bonds swapped versus shorter coupon securities. We were also able to pick up some solid A and AA rated uninsured securities at good levels to help performance and reduce our overweight to insured structures.†
What is your outlook for the Fund?
We expect the Fund’s portfolio to remain slightly long the duration of the benchmark as we believe we saw the short term high in rates in June and rates could continue to remain flat or decrease slightly. We will continue to look for opportunities to add yield and performance to the Fund using higher yielding, lower credit quality securities.†
Past performance does not guarantee future results.
1 | The Lehman Brothers Municipal Hawaii Bond Index is a rules-based, market-value weighted index engineered for the long-term tax-exempt bond market. The index has four main sectors: general obligation bonds, revenue bonds, insured bonds and prerefunded bonds. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
† | The composition of the Fund’s portfolio is subject to change. |
21
Pacific Capital Tax Free Securities Fund (cont.)
Credit Quality as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -2.87 | % | 1.59 | % | 2.94 | % | 4.33 | % | ||||
Class B Shares** | -3.40 | % | 1.32 | % | 2.85 | % | 4.17 | % | ||||
Class C Shares** | -0.61 | % | 2.23 | % | 3.02 | % | 4.15 | % | ||||
Class Y Shares | 1.34 | % | 3.25 | % | 4.04 | % | 5.03 | % |
* | Reflects 4.00% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at Pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services.
Class B and Class C shares of the Fund commenced operations on March 2, 1998 and April 30, 2004, respectively. Performance information for Class C shares is based upon the performance of Class B shares from inception. Performance calculated for any period up to and through March 2, 1998 is based upon the performance of Class A shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital Tax-Free Securities Fund is measured against the Lehman Brothers Municipal Hawaii Index, which is a rules-based, market-value weighted index engineered for the long-term tax-exempt bond market. The index has four main sectors: general obligation bonds, revenue bonds, insured bonds and prerefunded bonds. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
22
Pacific Capital High Grade Short Intermediate Fixed Income Fund
(Formerly the Short Intermediate U.S. Government Securities Fund)
Investment Style
High-quality, short-intermediate-term, taxable
Investment Objective
High current income consistent with capital preservation by investing 80% in fixed income securities, with most assets in debt securities issued or guaranteed by the U.S. Government, its agencies and instrumentalities and in investment grade corporate debt securities rated “A” or better by Standard & Poor’s. Under normal market and interest rate conditions, the Fund’s duration will be between two and five years.
Investment Considerations
Bonds offer a relatively stable level of income, although bond prices will fluctuate with interest rate changes providing the potential for principal gain or loss. Generally, bond prices and values fall when interest rates rise, and vice versa. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Government and agency guarantees apply only to the underlying securities and not to the Fund.
Investment Process
• | Top-down macroeconomic analysis of interest rate trends |
• | Bottom-up credit research to identify high quality bonds |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii (AMG)
• | AMG represents the largest, most experienced group of investment professionals in Hawaii |
• | AMG manages $ 4.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund gained 2.21% (Class A Shares without sales charge), compared to its benchmarks, the Merrill Lynch 1-5-Year U.S. Treasury Index1 and the Merrill Lynch Domestic Master 1–5 Year Index2, which returned 2.47% and 2.58%, respectively.
What were the major factors in the market that influenced the Fund’s performance?
Yields on Treasury securities out to 2 years moved higher while yields further out the curve, to long bonds, moved lower. Three-month and six-month bills moved up over 30 and 20 basis points (0.30% and 0.20%) to 5.07% and 5.14% respectively. The 5 year and 10 year notes moved down by 10 and 15 basis points (0.10% and 0.15%) to 4.90% and 4.98% respectively. This curve inversion enhanced the Fund’s return for the fourth quarter due to its slightly longer duration in the 2-5 year sector.†
Fund performance was hurt as the curve steepening dropped the Fund’s returns versus the benchmark due to the Fund’s relatatively longer duration.†
What major changes have occurred in the portfolio during the period covered by the report?
The most significant change was the addition of mortgages to the portfolio consistent with our diversification strategy. In addition, we continue to emphasize in our security selection bullets and off-the-run or smaller-deal-size issues and higher-coupon callable Agencies that offer a spread over Agency Global/Designated notes.†
What is your outlook for the Fund?
We believe the Federal Open Market Committee tightening cycle is over and that neutral to long duration positions versus the index along with the additional incremental spread gained from further diversification into mortgages and corporates may enhance shareholder returns going forward.†
Past performance does not guarantee future results.
The Merrill Lynch Domestic Master 1–5 Year Index has replaced the Fund’s prior benchmark to better reflect the Fund’s investment strategy.
1 | The Merrill Lynch 1–5-Year U.S. Treasury Index tracks the performance of Treasury bonds in a maturity range of one to five years. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
2 | Merrill Lynch Domestic Master 1–5 Year Index is a broad-based measure of the total rate of return performance of the short-term U.S. investment-grade bond market. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
† | The composition of the Fund’s portfolio is subject to change. |
23
Pacific Capital High Grade Short Intermediate Fixed Income Fund (cont.)
(Formerly the Short Intermediate U.S. Government Securities Fund)
Portfolio Composition as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -0.07 | % | 0.76 | % | 2.41 | % | 4.22 | % | ||||
Class C Shares** | 0.46 | % | 0.93 | % | 2.52 | % | 4.28 | % | ||||
Class Y Shares | 2.46 | % | 1.78 | % | 3.14 | % | 4.73 | % |
* | Reflects 2.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 1.00% (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at Pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services.
The Class C shares of the Fund commenced operations on April 30, 2004. Performance information for Class C shares is based upon the performance of Class A shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital High Grade Short Intermediate Fixed Income Fund is measured against the Merrill Lynch 1–5 Year U.S. Treasury Index and the Merrill Lynch Domestic Master 1–5 Year Index. The Fund has changed its standardized benchmark from the Merrill Lynch 1–5 Year U.S. Treasury Index to the Merrill Lynch Domestic Master 1–5 Year Index to better reflect the Fund’s investment strategy. The Merrill Lynch 1–5 Year U.S. Treasury Index tracks the performance of Treasury bonds in a maturity range of one to five years. The Merrill Lynch Domestic Master 1–5 Year Index is a broad-based measure of the total rate of return performance of the short-term U.S. investment-grade bond market. The indices are unmanaged and do not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
24
Pacific Capital Tax-Free Short Intermediate Securities Fund
Investment Style
High-quality, short-intermediate-term, tax-exempt
Investment Objective
High level of tax-exempt income by investing at least 80% in debt securities exempt from federal income tax and the alternative minimum tax, with 50% to 60% in Hawaii municipal obligations exempt from Hawaii state tax. Seeks to provide greater price stability by maintaining an average maturity between two and five years.
Investment Considerations
The Fund’s income may be subject to certain state and local taxes and, depending on one’s tax status, to the federal alternative minimum tax. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Generally, bond prices and values fall when interest rates rise, and vice versa. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Since the Fund invests significantly in securities of issuers in Hawaii, it will also be affected by a variety of Hawaii’s economic and political factors.
Investment Process
• | Top-down macroeconomic analysis of interest rate trends |
• | Bottom-up credit research to identify high quality bonds |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii (AMG)
• | AMG represents the largest, most experienced group of investment professionals in Hawaii |
• | AMG manages $ 4.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $ 2.4 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund gained 1.22% (Class A Shares without sales charge), compared to its benchmark, the Lehman Brothers Municipal Hawaii 3-Year Index1, which returned 1.68%.
What were the major factors in the market that influenced the Fund’s performance?
The Fed continued to tighten short rates, raising the federal funds rate to 5.25% at the end of the period. Overnight municipal rates actually declined slightly since April 30 due to a decline in supply following tax season. Longer on the municipal yield curve, rates rose during the quarter with 2, 10 and 20-year rates increasing by 6, 10 and 3 basis points (0.06%, 0.10% and 0.03%), respectively.
The Fund’s portfolio duration was slightly short the benchmark throughout the period. As short term rates continued to rise to a fairly neutral positioning, the duration was gradually increased.†
What major changes have occurred in the portfolio during the period covered by the report?
The Fund’s credit positioning was brought closer to the benchmark by purchasing some higher yielding, slightly lower credit quality securities and the percentage of Hawaii bonds in the portfolio was slightly increased.†
What is your outlook for the Fund?
We feel we have now reached the peak of the interest rate increasing cycle and will look to lengthen the duration of the Fund versus the index as we anticipate flat or declining rates in the future. We also expect to continue to increase the percentage of Hawaii bonds in the Fund as opportunities arise.†
Past performance does not guarantee future results.
1 | The Lehman Brothers Municipal Hawaii 3-Year Bond Index is the 2-4 year component of the Lehman Brothers Hawaii Municipal Bond index. The index is a rules-based, market-value-weighted index engineered for the tax-exempt bond market. The index has four main sectors: general obligation bonds, revenue bonds, insured bonds and prerefunded bonds. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
† | The composition of the Fund’s portfolio is subject to change. |
25
Pacific Capital Tax-Free Short Intermediate Securities Fund (cont.)
Credit Quality as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -1.10 | % | 0.61 | % | 1.88 | % | 3.02 | % | ||||
Class C Shares** | -0.44 | % | 0.84 | % | 2.01 | % | 3.09 | % | ||||
Class Y Shares | 1.47 | % | 1.66 | % | 2.61 | % | 3.53 | % |
* | Reflects 2.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 1.00% (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at Pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services.
The Class C shares of the Fund commenced operations on April 30, 2004. Performance information for Class C shares is based upon the performance of Class A shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital Tax-Free Short Intermediate Securities Fund is measured against the Lehman Brothers Municipal Hawaii 3-Year Index, an unmanaged index which is the 2-4 year component of the Lehman Brothers Hawaii Municipal Bond Index. The index is a rules-based, market-value-weighted index engineered for the tax-exempt bond market. The index has four main sectors: general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
26
Pacific Capital U.S. Government Short Fixed Income Fund
(Formerly the Ultra Short Government Fund)
Investment Style
High-quality, short-term, taxable
Investment Objective
High current income consistent with capital preservation by investing 100% in short-term debt securities issued or guaranteed by the U.S. Government and its agencies. Under normal market and interest rate conditions, the Fund’s target duration is not expected to exceed 2.5 years.
Investment Considerations
Bonds offer a relatively stable level of income, although bond prices will fluctuate with interest rate changes providing the potential for principal gain or loss. Generally, bond prices fall when interest rates rise, and vice versa. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Government and agency guarantees apply only to the underlying securities and not to the Fund.
Investment Process
• | Top-down macroeconomic analysis of interest rate trends |
• | Bottom-up credit research to identify high quality bonds |
Investment Management
Advised by the Asset Management Group of Bank of Hawaii (AMG)
• | AMG represents the largest, most experienced group of investment professionals in Hawaii |
• | AMG manages $4.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2006, the Fund gained 3.27% (Class A Shares without sales charge), compared to its benchmarks, the Merrill Lynch 6-Month U.S. Treasury Bill Index1 and Merrill Lynch 1-3 Year U.S. Treasury Index2, which returned 4.16% and 2.86%, respectively.
What were the major factors in the market that influenced the Fund’s performance?
Yields on Treasury securities out to 2 years moved higher while yields further out the curve, to long bonds, moved lower. Three-month and six-month bills moved up over 30 and 20 basis points (0.30% and 0.20%) to 5.07% and 5.14%, respectively. The 3-year and 5-year notes moved down by 4 and 10 basis points (0.04% and 0.10%) to 4.90% and 4.98%, respectively. This curve inversion enhanced the Fund’s return for the quarter due to its slightly longer duration in the 2-5 year sector.
Over the past year, the Fund’s return was slightly under the Merrill Lynch 6-Month U.S. Treasury Bill Index and over the Merrill Lynch 1-3 year Treasury Index as a result of more significant weighting in the 1–3-year sector.†
What major changes have occurred in the portfolio during the period covered by the report?
Our extension of the Fund’s duration was the most significant change in the period. As we continue to transition to a neutral/long position versus the 1-3 year index, we are still emphasizing in our security selection bullets and off-the-run smaller-deal-size high-coupon callable Agency issues that offer a spread over Agency Global/Designated notes.†
What is your outlook for the Fund?
We believe that the Federal Open Market Committee tightening cycle is over and that neutral to long duration positions versus the index along with the additional incremental spread gained from further diversification into the 3-5 year Agency sector may enhance shareholder returns going forward.†
Past performance does not guarantee future results.
The Merrill Lynch 1-3 Year U.S. Treasury Index has replaced the Fund’s prior benchmark to better reflect the Fund’s investment strategy.
1 | The Merrill Lynch 6-Month U.S. Treasury Bill Index reflects the monthly return equivalents of yield averages that are not marked to the market. The fixed maturities are constructed by the Treasury department, and are based on the most actively traded marketable Treasury securities. Yields on these issues are based on composite quotes reported by U.S. Government securities dealers to the Federal Reserve Bank of New York. To obtain the constant maturity yields, personnel at Treasury construct a yield curve each business day, and yield values are then read from the curve at fixed maturities. Investors cannot invest directly in an index, although they can invest in the underlying securities. |
2 | The Merrill Lynch 1-3 Year Treasury Index is comprised of United States Treasury issues with maturities from one to three years. Investors cannot invest directly in an index, although they can invest in its underlying securities. |
† | The composition of the Fund’s portfolio is subject to change. |
27
Pacific Capital U.S. Government Short Fixed Income Fund (cont.)
Portfolio Composition as of July 31, 2006
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark. The chart above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2006
1 Year | 3 Year | 5 Year | Since Inception (6/1/00) | |||||||||
Class A Shares* | 0.96 | % | 0.82 | % | 1.65 | % | 2.73 | % | ||||
Class B Shares** | -1.50 | % | -0.13 | % | 1.14 | % | 2.37 | % | ||||
Class C Shares** | 1.50 | % | 0.84 | % | 1.33 | % | 2.37 | % | ||||
Class Y Shares | 3.42 | % | 1.82 | % | 2.34 | % | 3.36 | % |
* | Reflects 2.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns include voluntary waivers. Without these waivers, returns would have been lower.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at Pacificcapitalfunds.com.
Pacific Capital Funds are distributed by BISYS Fund Services. The Asset Management Group of Bank of Hawaii provides investment advisory services to the Fund and receives a fee for its services.
The Pacific Capital U.S. Government Short Fixed Income Fund’s inception date was June 1, 2000. The Class A, Class B and Class C shares were not in existence prior to August 1, 2000, August 1, 2000 and April 30, 2004, respectively. Performance information for Class C shares is based upon the performance of Class B shares from inception. Performance calculated for any period up to and through August 1, 2000 is based upon the performance of Class Y shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital U.S. Government Short Fixed Income Fund is measured against the Merrill Lynch 6-Month U.S. Treasury Bill Index and the Merrill Lynch 1–3-Year U.S. Treasury Index. The Fund has changed its benchmark from the Merrill Lynch 6-Month U.S. Treasury Bill Index to the Merrill Lynch 1–3-Year U.S. Treasury Index to better represent the investment strategy. Merrill Lynch 6-Month U.S. Treasury Bill Index reflects the monthly return equivalents of yield averages that are not marked to the market. The fixed maturities are constructed by the Treasury department, and are based on the most actively traded marketable Treasury securities. Yields on these issues are based on composite quotes reported by U.S. Government securities dealers to the Federal Reserve Bank of New York. To obtain the constant maturity yields, personnel at Treasury construct a yield curve each business day, and yield values are then read from the curve at fixed maturities. The Merrill Lynch 1-3 Year Treasury Index is comprised of United States Treasury issues with maturities from one to three years. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
28
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities
July 31, 2006
New Asia Growth Fund | International Stock Fund | Small Cap Fund | Mid-Cap Fund | |||||||||||||
ASSETS: | ||||||||||||||||
Investments, at cost | $ | 75,036,967 | $ | 190,385,462 | $ | 416,319,098 | $ | 69,892,004 | ||||||||
Investments, at value | $ | 88,651,949 | $ | 211,144,065 | $ | 434,802,786 | $ | 74,872,158 | ||||||||
Cash | — | 131,943 | — | — | ||||||||||||
Foreign currency, at value (cost $508,364 and $53,429, respectively) | 508,968 | 53,809 | — | — | ||||||||||||
Interest and dividends receivable | 128,821 | 120,812 | 103,295 | 34,260 | ||||||||||||
Receivable for capital shares issued | 62,337 | 73,136 | 1,078,055 | 122,930 | ||||||||||||
Receivable for investments sold | 348,133 | 1,304,663 | 5,598,507 | 589,820 | ||||||||||||
Reclaims receivable | — | 229,444 | — | — | ||||||||||||
Prepaid expenses and other assets | 1,521 | 5,225 | 11,619 | 1,798 | ||||||||||||
Total Assets | 89,701,729 | 213,063,097 | 441,594,262 | 75,620,966 | ||||||||||||
LIABILITIES: | ||||||||||||||||
Payable for capital shares redeemed | 98,860 | 428,548 | 1,905,644 | 298,269 | ||||||||||||
Payable for investments purchased | 428,860 | 337,447 | 8,119,945 | 637,790 | ||||||||||||
Payable for foreign currency contracts | 434 | 3,129 | — | — | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 29,708 | 61,812 | 129,351 | 18,995 | ||||||||||||
Sub-investment advisory fees | 37,135 | 77,736 | 232,774 | 13,216 | ||||||||||||
Administration fees | 1,307 | 3,104 | 6,343 | 1,246 | ||||||||||||
Compliance service fees | 1,124 | 2,634 | 6,474 | 1,616 | ||||||||||||
Distribution fees | 1,319 | 1,262 | 60,510 | 653 | ||||||||||||
Other fees | 57,856 | 80,435 | 160,629 | 21,420 | ||||||||||||
Total Liabilities | 656,603 | 996,107 | 10,621,670 | 993,205 | ||||||||||||
NET ASSETS: | ||||||||||||||||
Capital (no par value) | 70,756,209 | 204,020,453 | 381,605,950 | 63,435,315 | ||||||||||||
Undistributed (distributions in excess of) net investment income | (33,366 | ) | (433,776 | ) | — | 5,576 | ||||||||||
Accumulated net realized gains (losses) from investments and foreign currency transactions | 4,706,927 | (12,281,199 | ) | 30,882,954 | 6,206,716 | |||||||||||
Net unrealized appreciation from investments and foreign currency transactions | 13,615,356 | 20,761,512 | 18,483,688 | 4,980,154 | ||||||||||||
Net Assets | $ | 89,045,126 | $ | 212,066,990 | $ | 430,972,592 | $ | 74,627,761 | ||||||||
Net Assets | ||||||||||||||||
Class A | $ | 2,156,516 | $ | 998,812 | $ | 215,270,212 | $ | 886,129 | ||||||||
Class B | 639,163 | 672,624 | 3,092,724 | N/A | ||||||||||||
Class C | 413,294 | 600,717 | 14,908,235 | 546,870 | ||||||||||||
Class Y | 85,836,153 | 209,794,837 | 197,701,421 | 73,194,762 | ||||||||||||
Total | $ | 89,045,126 | $ | 212,066,990 | $ | 430,972,592 | $ | 74,627,761 | ||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
Class A | 128,058 | 92,362 | 12,183,410 | 72,561 | ||||||||||||
Class B | 39,615 | 65,472 | 186,074 | N/A | ||||||||||||
Class C | 25,633 | 58,511 | 896,326 | 45,319 | ||||||||||||
Class Y | 5,028,985 | 19,020,432 | 11,034,688 | 5,983,075 | ||||||||||||
Total | 5,222,291 | 19,236,777 | 24,300,498 | 6,100,955 | ||||||||||||
Net Asset Value | ||||||||||||||||
Class A—redemption price per share | $ | 16.84 | $ | 10.81 | $ | 17.67 | $ | 12.21 | ||||||||
Class A—maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 5.25 | % | ||||||||
Class A—maximum offering price per share | $ | 17.77 | $ | 11.41 | $ | 18.65 | $ | 12.89 | ||||||||
Class B—offering price per share* | $ | 16.13 | $ | 10.27 | $ | 16.62 | N/A | |||||||||
Class C—offering price per share* | $ | 16.12 | $ | 10.27 | $ | 16.63 | $ | 12.07 | ||||||||
Class Y—offering and redemption price per share | $ | 17.07 | $ | 11.03 | $ | 17.92 | $ | 12.23 | ||||||||
* | Redemption price per share varies based on length of time shares are held. |
See notes to financial statements.
29
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities, Continued
July 31, 2006
Growth Stock Fund | Growth and Income Fund | Value Fund | High Grade Core Fixed Income Fund | |||||||||||||
ASSETS: | ||||||||||||||||
Investments, at cost | $ | 168,367,927 | $ | 161,224,736 | $ | 136,560,135 | $ | 296,323,951 | ||||||||
Investments, at value | $ | 165,857,850 | $ | 166,198,101 | $ | 151,503,383 | $ | 296,824,073 | ||||||||
Cash | — | — | 23 | — | ||||||||||||
Interest and dividends receivable | 67,104 | 116,443 | 181,200 | 3,266,229 | ||||||||||||
Receivable for capital shares issued | 126,297 | 201,716 | 459,573 | 701,014 | ||||||||||||
Receivable for investments sold | 4,251,856 | 3,326,892 | 3,257,220 | — | ||||||||||||
Prepaid expenses and other assets | 202 | 2,727 | 1,269 | 4,253 | ||||||||||||
Total Assets | 170,303,309 | 169,845,879 | 155,402,668 | 300,795,569 | ||||||||||||
LIABILITIES: | ||||||||||||||||
Distributions payable | — | — | — | 151,704 | ||||||||||||
Payable for capital shares redeemed | 141,518 | 120,783 | 104,651 | 146,857 | ||||||||||||
Payable for investments purchased | 6,377,301 | 4,274,154 | 2,967,798 | 5,001,563 | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 111,367 | 111,679 | 102,074 | 112,049 | ||||||||||||
Administration fees | 2,409 | 2,432 | 2,238 | 4,345 | ||||||||||||
Compliance service fees | 7,244 | 4,440 | 5,418 | 8,676 | ||||||||||||
Distribution fees | 11,038 | 7,375 | 3,577 | 4,394 | ||||||||||||
Other fees | 48,510 | 41,943 | 35,446 | 52,137 | ||||||||||||
Total Liabilities | 6,699,387 | 4,562,806 | 3,221,202 | 5,481,725 | ||||||||||||
NET ASSETS: | ||||||||||||||||
Capital (no par value) | 257,574,129 | 172,011,909 | 123,659,262 | 300,188,954 | ||||||||||||
Undistributed (distributions in excess of) net investment income | — | — | 1 | (54,821 | ) | |||||||||||
Accumulated net realized gains (losses) from investment transactions | (91,460,130 | ) | (11,702,201 | ) | 13,578,955 | (5,320,411 | ) | |||||||||
Net unrealized appreciation (depreciation) from investments | (2,510,077 | ) | 4,973,365 | 14,943,248 | 500,122 | |||||||||||
Net Assets | $ | 163,603,922 | $ | 165,283,073 | $ | 152,181,466 | $ | 295,313,844 | ||||||||
Net Assets | ||||||||||||||||
Class A | $ | 7,979,453 | $ | 5,519,293 | $ | 2,990,919 | $ | 3,688,909 | ||||||||
Class B | 8,898,266 | 5,329,854 | 1,432,796 | 2,943,872 | ||||||||||||
Class C | 1,925,628 | 1,913,135 | 2,081,575 | 1,321,534 | ||||||||||||
Class Y | 144,800,575 | 152,520,791 | 145,676,176 | 287,359,529 | ||||||||||||
Total | $ | 163,603,922 | $ | 165,283,073 | $ | 152,181,466 | $ | 295,313,844 | ||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
Class A | 950,151 | 414,448 | 279,666 | 347,646 | ||||||||||||
Class B | 1,137,602 | 426,097 | 136,335 | 278,036 | ||||||||||||
Class C | 246,383 | 153,101 | 197,562 | 124,815 | ||||||||||||
Class Y | 16,717,873 | 11,365,534 | 13,599,885 | 26,920,115 | ||||||||||||
Total | 19,052,009 | 12,359,180 | 14,213,448 | 27,670,612 | ||||||||||||
Net Asset Value | ||||||||||||||||
Class A—redemption price per share | $ | 8.40 | $ | 13.32 | $ | 10.69 | $ | 10.61 | ||||||||
Class A—maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 4.00 | % | ||||||||
Class A—maximum offering price per share | $ | 8.87 | $ | 14.06 | $ | 11.28 | $ | 11.05 | ||||||||
Class B—offering price per share* | $ | 7.82 | $ | 12.51 | $ | 10.51 | $ | 10.59 | ||||||||
Class C—offering price per share* | $ | 7.82 | $ | 12.50 | $ | 10.54 | $ | 10.59 | ||||||||
Class Y—offering and redemption price per share | $ | 8.66 | $ | 13.42 | $ | 10.71 | $ | 10.67 | ||||||||
* | Redemption price per share varies based on length of time shares are held. |
See notes to financial statements.
30
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities, Continued
July 31, 2006
Tax-Free Securities Fund | High Grade Short Intermediate Fixed Income Fund | Tax-Free Short Intermediate Securities Fund | U.S. Government Short Fixed Income Fund | |||||||||||||
ASSETS: | ||||||||||||||||
Investments, at cost | $ | 279,665,830 | $ | 61,922,420 | $ | 65,026,574 | $ | 101,268,735 | ||||||||
Investments, at value | $ | 293,210,560 | $ | 61,387,412 | $ | 65,173,754 | $ | 101,060,074 | ||||||||
Cash | — | 539 | — | 448 | ||||||||||||
Interest and dividends receivable | 2,949,300 | 905,896 | 548,218 | 1,087,510 | ||||||||||||
Receivable for capital shares issued | 446 | 214,371 | — | 31,989 | ||||||||||||
Receivable for investments sold | — | 993,947 | — | 2,484,867 | ||||||||||||
Prepaid expenses and other assets | 2,432 | 553 | 688 | — | ||||||||||||
Total Assets | 296,162,738 | 63,502,718 | 65,722,660 | 104,664,888 | ||||||||||||
LIABILITIES: | ||||||||||||||||
Distributions payable | 131,633 | 28,936 | 22,952 | 52,404 | ||||||||||||
Payable for capital shares redeemed | 122,530 | 1,253,824 | 36,521 | 3,347,869 | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 112,475 | 5,720 | 22,182 | 12,133 | ||||||||||||
Administration fees | 4,370 | 933 | 969 | 1,544 | ||||||||||||
Compliance service fees | 10,450 | 2,474 | 2,153 | 6,024 | ||||||||||||
Distribution fees | 3,329 | 822 | 599 | 2,805 | ||||||||||||
Other fees | 56,831 | 17,127 | 19,540 | 31,902 | ||||||||||||
Total Liabilities | 441,618 | 1,309,836 | 104,916 | 3,454,681 | ||||||||||||
NET ASSETS: | ||||||||||||||||
Capital (no par value) | 282,469,104 | 64,776,659 | 66,177,980 | 104,238,524 | ||||||||||||
Undistributed net investment income | 35 | 52 | 762 | 7,143 | ||||||||||||
Accumulated net realized losses from investment transactions | (292,749 | ) | (2,048,821 | ) | (708,178 | ) | (2,826,799 | ) | ||||||||
Net unrealized appreciation (depreciation) from investments | 13,544,730 | (535,008 | ) | 147,180 | (208,661 | ) | ||||||||||
Net Assets | $ | 295,721,120 | $ | 62,192,882 | $ | 65,617,744 | $ | 101,210,207 | ||||||||
Net Assets | ||||||||||||||||
Class A | $ | 6,209,150 | $ | 1,260,818 | $ | 2,791,915 | $ | 2,355,467 | ||||||||
Class B | 2,375,166 | N/A | N/A | 1,238,230 | ||||||||||||
Class C | 10,404 | 674,621 | 10,129 | 1,514,215 | ||||||||||||
Class Y | 287,126,400 | 60,257,443 | 62,815,700 | 96,102,295 | ||||||||||||
Total | $ | 295,721,120 | $ | 62,192,882 | $ | 65,617,744 | $ | 101,210,207 | ||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
Class A | 614,074 | 132,320 | 277,676 | 234,687 | ||||||||||||
Class B | 234,885 | N/A | N/A | 123,369 | ||||||||||||
Class C | 1,029 | 70,865 | 1,007 | 150,873 | ||||||||||||
Class Y | 28,281,836 | 6,312,475 | 6,213,836 | 9,568,148 | ||||||||||||
Total | 29,131,824 | 6,515,660 | 6,492,519 | 10,077,077 | ||||||||||||
Net Asset Value | ||||||||||||||||
Class A—redemption price per share | $ | 10.11 | $ | 9.53 | $ | 10.05 | $ | 10.04 | ||||||||
Class A—maximum sales charge | 4.00 | % | 2.25 | % | 2.25 | % | 2.25 | % | ||||||||
Class A—maximum offering price per share | $ | 10.53 | $ | 9.75 | $ | 10.28 | $ | 10.27 | ||||||||
Class B—offering price per share* | $ | 10.11 | N/A | N/A | $ | 10.04 | ||||||||||
Class C—offering price per share* | $ | 10.11 | $ | 9.52 | $ | 10.06 | $ | 10.04 | ||||||||
Class Y—offering and redemption price per share | $ | 10.15 | $ | 9.55 | $ | 10.11 | $ | 10.04 | ||||||||
* | Redemption price per share varies based on length of time shares are held. |
See notes to financial statements.
31
PACIFIC CAPITAL FUNDS
Statements of Operations
Year Ended July 31, 2006
New Asia Growth Fund | International Stock Fund | Small Cap Fund | Mid-Cap Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend income | $ | 1,862,275 | $ | 4,007,639 | $ | 3,904,914 | $ | 932,967 | ||||||||
Interest income | 175 | — | 198,896 | — | ||||||||||||
Foreign tax withholding | (210,635 | ) | (374,754 | ) | — | — | ||||||||||
Total Investment Income | 1,651,815 | 3,632,885 | 4,103,810 | 932,967 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 265,460 | 689,514 | 1,595,428 | 486,050 | ||||||||||||
Sub-investment advisory fees | 331,825 | 723,787 | 2,090,519 | 162,018 | ||||||||||||
Administration fees | 100,986 | 232,800 | 510,793 | 125,327 | ||||||||||||
Distribution fees—Class A | 9,722 | 4,363 | 795,812 | 4,220 | ||||||||||||
Distribution fees—Class B | 5,612 | 6,922 | 33,570 | — | ||||||||||||
Distribution fees—Class C | 3,531 | 5,764 | 106,583 | 5,791 | ||||||||||||
Accounting fees | 48,762 | 95,242 | 130,406 | 40,317 | ||||||||||||
Compliance service fees | 4,639 | 10,374 | 21,564 | 5,209 | ||||||||||||
Custodian fees | 143,664 | 164,967 | 69,163 | 26,321 | ||||||||||||
Transfer agent fees | 93,292 | 91,891 | 332,553 | 63,333 | ||||||||||||
Legal and audit fees | 17,249 | 39,001 | 94,375 | 15,340 | ||||||||||||
Trustee fees | 5,550 | 12,427 | 28,488 | 7,791 | ||||||||||||
Registration and filing fees | 1,754 | 20,032 | 77,528 | 1,648 | ||||||||||||
Other fees | 30,058 | 38,522 | 181,652 | 23,805 | ||||||||||||
Total expenses before reductions | 1,062,104 | 2,135,606 | 6,068,434 | 967,170 | ||||||||||||
Less expenses waived/reimbursed by the adviser | (1,541 | ) | (154,196 | ) | (362,102 | ) | (243,241 | ) | ||||||||
Less expenses waived by the administrator | (36,426 | ) | (83,845 | ) | (183,638 | ) | (67,898 | ) | ||||||||
Less expenses waived by the distributor—Class A | (4,927 | ) | (2,244 | ) | (383,812 | ) | (2,142 | ) | ||||||||
Net Expenses | 1,019,210 | 1,895,321 | 5,138,882 | 653,889 | ||||||||||||
Net Investment Income (Loss) | 632,605 | 1,737,564 | (1,035,072 | ) | 279,078 | |||||||||||
Realized/Unrealized Gains (Losses) from Investments and Foreign Currency Transactions: | ||||||||||||||||
Net realized gains from investments and foreign currency transactions | 6,669,452 | 13,917,604 | 35,598,548 | 8,254,095 | ||||||||||||
Net increase from payments by affiliates and reimbursement of losses realized on the disposal of investments in violation of restrictions | 22,564 | — | 43,114 | — | ||||||||||||
Change in unrealized appreciation/depreciation on investments and foreign currency transactions | 1,934,685 | 10,588,445 | (23,151,245 | ) | (7,208,651 | ) | ||||||||||
Net realized/unrealized gains from investments and foreign currency transactions | 8,626,701 | 24,506,049 | 12,490,417 | 1,045,444 | ||||||||||||
�� | ||||||||||||||||
Change in net assets resulting from operations | $ | 9,259,306 | $ | 26,243,613 | $ | 11,455,345 | $ | 1,324,522 | ||||||||
See notes to financial statements.
32
PACIFIC CAPITAL FUNDS
Statements of Operations, Continued
Year Ended July 31, 2006
Growth Stock Fund | Growth and Income Fund | Value Fund | High Grade Core Fixed Income Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend income | $ | 2,278,895 | $ | 2,720,177 | $ | 3,736,639 | $ | 228,159 | ||||||||
Interest income | 425 | 920 | 765 | 14,959,664 | ||||||||||||
Total Investment Income | 2,279,320 | 2,721,097 | 3,737,404 | 15,187,823 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 1,635,189 | 1,305,371 | 1,316,510 | 1,820,710 | ||||||||||||
Administration fees | 317,296 | 251,305 | 254,373 | 468,096 | ||||||||||||
Distribution fees—Class A | 46,321 | 27,793 | 15,569 | 22,080 | ||||||||||||
Distribution fees—Class B | 109,646 | 65,765 | 14,524 | 35,851 | ||||||||||||
Distribution fees—Class C | 21,154 | 20,662 | 19,832 | 12,004 | ||||||||||||
Accounting fees | 86,896 | 65,663 | 70,168 | 134,312 | ||||||||||||
Compliance service fees | 20,432 | 13,713 | 14,778 | 24,619 | ||||||||||||
Custodian fees | 36,306 | 31,154 | 30,937 | 25,466 | ||||||||||||
Transfer agent fees | 194,953 | 143,008 | 93,810 | 107,978 | ||||||||||||
Legal and audit fees | 51,073 | 39,731 | 41,639 | 72,477 | ||||||||||||
Trustee fees | 21,737 | 15,790 | 16,669 | 29,830 | ||||||||||||
Registration and filing fees | 19,141 | 17,651 | 4,443 | 5,100 | ||||||||||||
Other fees | 78,429 | 54,877 | 51,469 | 86,186 | ||||||||||||
Total expenses before reductions | 2,638,573 | 2,052,483 | 1,944,721 | 2,844,709 | ||||||||||||
Less expenses waived/reimbursed by the adviser | (9,880 | ) | (5,664 | ) | (1,263 | ) | (457,413 | ) | ||||||||
Less expenses waived by the administrator | (119,729 | ) | (93,115 | ) | (94,144 | ) | (173,779 | ) | ||||||||
Less expenses waived by the distributor—Class A | (24,176 | ) | (14,352 | ) | (8,054 | ) | (11,629 | ) | ||||||||
Net Expenses | 2,484,788 | 1,939,352 | 1,841,260 | 2,201,888 | ||||||||||||
Net Investment Income (Loss) | (205,468 | ) | 781,745 | 1,896,144 | 12,985,935 | |||||||||||
Realized/Unrealized Gains (Losses) from Investments: | ||||||||||||||||
Net realized gains (losses) from investments | 17,577,259 | 8,440,381 | 21,227,227 | (5,320,883 | ) | |||||||||||
Net increase from payments by affiliates | 7,013 | — | 3,762 | — | ||||||||||||
Change in unrealized appreciation/depreciation on investments | (20,316,335 | ) | (8,778,523 | ) | (8,671,400 | ) | (6,239,526 | ) | ||||||||
Net realized/unrealized gains (losses) from investments | (2,732,063 | ) | (338,142 | ) | 12,559,589 | (11,560,409 | ) | |||||||||
Change in net assets resulting from operations | $ | (2,937,531 | ) | $ | 443,603 | $ | 14,455,733 | $ | 1,425,526 | |||||||
See notes to financial statements.
33
PACIFIC CAPITAL FUNDS
Statements of Operations, Continued
Year Ended July 31, 2006
Tax-Free Securities Fund | High Grade Short Intermediate Fixed Income Fund | Tax-Free Short Intermediate Securities Fund | U.S. Government Short Fixed Income Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Interest income | $ | 15,094,833 | $ | 3,205,874 | $ | 2,590,170 | $ | 4,616,907 | ||||||||
Dividend income | 50,696 | — | 38,619 | — | ||||||||||||
Total Investment Income | 15,145,529 | 3,205,874 | 2,628,789 | 4,616,907 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 1,886,854 | 375,349 | 347,693 | 484,621 | ||||||||||||
Administration fees | 485,668 | 116,137 | 107,381 | 187,583 | ||||||||||||
Distribution fees—Class A | 38,538 | 8,149 | 17,554 | 23,707 | ||||||||||||
Distribution fees—Class B | 29,154 | — | — | 12,996 | ||||||||||||
Distribution fees—Class C | 103 | 6,246 | 102 | 15,353 | ||||||||||||
Accounting fees | 144,608 | 39,441 | 34,172 | 59,442 | ||||||||||||
Compliance service fees | 30,174 | 7,172 | 6,562 | 15,595 | ||||||||||||
Custodian fees | 93,951 | 10,314 | 23,971 | 14,254 | ||||||||||||
Transfer agent fees | 86,930 | 63,966 | 61,416 | 88,589 | ||||||||||||
Legal and audit fees | 75,694 | 21,651 | 19,449 | 23,575 | ||||||||||||
Trustee fees | 31,305 | 7,599 | 6,856 | 12,800 | ||||||||||||
Registration and filing fees | 3,776 | 1,806 | 2,204 | 2,552 | ||||||||||||
Other fees | 92,623 | 25,757 | 24,702 | 46,528 | ||||||||||||
Total expenses before reductions | 2,999,378 | 683,587 | 652,062 | 987,595 | ||||||||||||
Less expenses waived/reimbursed by the adviser | (472,195 | ) | (231,392 | ) | (69,777 | ) | (370,648 | ) | ||||||||
Less expenses waived by the administrator | (181,617 | ) | (42,888 | ) | (39,770 | ) | (102,106 | ) | ||||||||
Less expenses waived by the distributor—Class A | (20,580 | ) | (4,356 | ) | (9,253 | ) | (13,676 | ) | ||||||||
Net Expenses | 2,324,986 | 404,951 | 533,262 | 501,165 | ||||||||||||
Net Investment Income | 12,820,543 | 2,800,923 | 2,095,527 | 4,115,742 | ||||||||||||
Realized/Unrealized Gains (Losses) from Investments: | ||||||||||||||||
Net realized gains (losses) from investments | 1,944,124 | (1,691,436 | ) | (645,170 | ) | (831,923 | ) | |||||||||
Net increase from payments by affiliates | — | 2,276 | — | — | ||||||||||||
Change in unrealized appreciation/depreciation on investments | (10,529,391 | ) | 625,450 | (450,125 | ) | 783,679 | ||||||||||
Net realized/unrealized losses from investments | (8,585,267 | ) | (1,063,710 | ) | (1,095,295 | ) | (48,244 | ) | ||||||||
Change in net assets resulting from operations | $ | 4,235,276 | $ | 1,737,213 | $ | 1,000,232 | $ | 4,067,498 | ||||||||
See notes to financial statements.
34
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets
New Asia Growth Fund | International Stock Fund | Small Cap Fund | ||||||||||||||||||||||
Year Ended July 31, 2006 | Year Ended July 31, 2005 | Year Ended July 31, 2006 | Year Ended July 31, 2005 | Year Ended July 31, 2006 | Year Ended July 31, 2005 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 632,605 | $ | 425,320 | $ | 1,737,564 | $ | 736,463 | $ | (1,035,072 | ) | $ | (593,929 | ) | ||||||||||
Net realized gains from investments and foreign currency transactions and reimbursement from affiliates of realized losses on the disposal of investments in violation of restrictions | 6,692,016 | 2,583,113 | 13,917,604 | 1,884,497 | 35,641,662 | 22,221,235 | ||||||||||||||||||
Change in unrealized appreciation/ depreciation on investments and foreign currency transactions | 1,934,685 | 9,023,390 | 10,588,445 | 11,417,855 | (23,151,245 | ) | 21,192,522 | |||||||||||||||||
Change in net assets resulting from operations | 9,259,306 | 12,031,823 | 26,243,613 | 14,038,815 | 11,455,345 | 42,819,828 | ||||||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (12,758 | ) | (14,518 | ) | (6,708 | ) | (3,039 | ) | — | — | ||||||||||||||
From net realized gains | (92,945 | ) | — | — | — | (9,820,847 | ) | (3,504,316 | ) | |||||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | (1,860 | ) | (2,083 | ) | (2,067 | ) | (809 | ) | — | — | ||||||||||||||
From net realized gains | (26,014 | ) | — | — | — | (243,751 | ) | (515,464 | ) | |||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | (1,278 | ) | (488 | ) | (1,862 | ) | (677 | ) | — | — | ||||||||||||||
From net realized gains | (16,651 | ) | — | — | — | (690,409 | ) | (52,384 | ) | |||||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (637,214 | ) | (413,438 | ) | (1,775,203 | ) | (503,746 | ) | — | — | ||||||||||||||
From net realized gains | (2,482,497 | ) | — | — | — | (9,420,884 | ) | (18,502,150 | ) | |||||||||||||||
Change in net assets from shareholder distributions | (3,271,217 | ) | (430,527 | ) | (1,785,840 | ) | (508,271 | ) | (20,175,891 | ) | (22,574,314 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | 36,476,710 | 3,388,115 | 92,467,660 | 20,945,030 | 201,307,844 | 86,728,759 | ||||||||||||||||||
Change in net assets | 42,464,799 | 14,989,411 | 116,925,433 | 34,475,574 | 192,587,298 | 106,974,273 | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 46,580,327 | 31,590,916 | 95,141,557 | 60,665,983 | 238,385,294 | 131,411,021 | ||||||||||||||||||
End of year | $ | 89,045,126 | $ | 46,580,327 | $ | 212,066,990 | $ | 95,141,557 | $ | 430,972,592 | $ | 238,385,294 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | (33,366 | ) | $ | (31,718 | ) | $ | (433,776 | ) | $ | (167,757 | ) | $ | — | $ | — | ||||||||
See notes to financial statements.
35
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, Continued
New Asia Growth Fund | International Stock Fund | Small Cap Fund | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 453,145 | $ | 110,470 | $ | 378,695 | $ | 120,641 | $ | 140,268,644 | $ | 87,222,098 | ||||||||||||
Dividends reinvested | 91,056 | 12,846 | 5,677 | 2,943 | 9,061,442 | 3,190,344 | ||||||||||||||||||
Cost of shares redeemed | (312,874 | ) | (213,232 | ) | (482,822 | ) | (231,690 | ) | (33,422,466 | ) | (6,248,342 | ) | ||||||||||||
Change in net assets from Class A | $ | 231,327 | $ | (89,916 | ) | $ | (98,450 | ) | $ | (108,106 | ) | $ | 115,907,620 | $ | 84,164,100 | |||||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 299,499 | $ | 10,739 | $ | 49,852 | $ | 30,170 | $ | 175,508 | $ | 61,059 | ||||||||||||
Dividends reinvested | 22,513 | 2,049 | 1,899 | 8 | 234,792 | 501,620 | ||||||||||||||||||
Cost of shares redeemed | (173,750 | ) | (59,525 | ) | (155,256 | ) | (107,350 | ) | (758,450 | ) | (386,592 | ) | ||||||||||||
Change in net assets from Class B | $ | 148,262 | $ | (46,737 | ) | $ | (103,505 | ) | $ | (77,172 | ) | $ | (348,150 | ) | $ | 176,087 | ||||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 213,571 | $ | 253,226 | $ | 121,026 | $ | 511,484 | $ | 10,271,763 | $ | 5,418,148 | ||||||||||||
Dividends reinvested | 16,897 | 488 | 1,862 | 677 | 645,787 | 48,571 | ||||||||||||||||||
Cost of shares redeemed | (114,287 | ) | (24,439 | ) | (120,564 | ) | (50,873 | ) | (1,410,781 | ) | (97,769 | ) | ||||||||||||
Change in net assets from Class C | $ | 116,181 | $ | 229,275 | $ | 2,324 | $ | 461,288 | $ | 9,506,769 | $ | 5,368,950 | ||||||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 46,217,077 | $ | 13,111,860 | $ | 119,632,755 | $ | 35,231,284 | $ | 104,956,829 | $ | 47,475,047 | ||||||||||||
Dividends reinvested | 2,087,752 | 98,569 | 94,026 | 42,090 | 7,656,477 | 14,791,147 | ||||||||||||||||||
Cost of shares redeemed | (12,323,889 | ) | (9,914,936 | ) | (27,059,490 | ) | (14,604,354 | ) | (36,371,701 | ) | (65,246,572 | ) | ||||||||||||
Change in net assets from Class Y | $ | 35,980,940 | $ | 3,295,493 | $ | 92,667,291 | $ | 20,669,020 | $ | 76,241,605 | $ | (2,980,378 | ) | |||||||||||
Change in net assets from capital transactions | $ | 36,476,710 | $ | 3,388,115 | $ | 92,467,660 | $ | 20,945,030 | $ | 201,307,844 | $ | 86,728,759 | ||||||||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 27,659 | 8,137 | 36,049 | 14,104 | 7,789,242 | 5,261,910 | ||||||||||||||||||
Reinvested | 5,981 | 956 | 529 | 331 | 530,219 | 196,271 | ||||||||||||||||||
Redeemed | (19,638 | ) | (15,943 | ) | (50,222 | ) | (27,702 | ) | (1,865,525 | ) | (371,965 | ) | ||||||||||||
Net change in Class A | 14,002 | (6,850 | ) | (13,644 | ) | (13,267 | ) | 6,453,936 | 5,086,216 | |||||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 19,301 | 833 | 5,088 | 3,870 | 10,339 | 3,789 | ||||||||||||||||||
Reinvested | 1,543 | 161 | 188 | 1 | 14,529 | 32,279 | ||||||||||||||||||
Redeemed | (11,008 | ) | (4,463 | ) | (15,812 | ) | (13,393 | ) | (45,167 | ) | (24,080 | ) | ||||||||||||
Net change in Class B | 9,836 | (3,469 | ) | (10,536 | ) | (9,522 | ) | (20,299 | ) | 11,988 | ||||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 13,909 | 19,123 | 12,705 | 62,738 | 600,506 | 338,763 | ||||||||||||||||||
Reinvested | 1,156 | 37 | 184 | 80 | 39,937 | 3,124 | ||||||||||||||||||
Redeemed | (7,606 | ) | (1,821 | ) | (12,333 | ) | (6,200 | ) | (82,573 | ) | (6,335 | ) | ||||||||||||
Net change in Class C | 7,459 | 17,339 | 556 | 56,618 | 557,870 | 335,552 | ||||||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 2,842,168 | 952,582 | 11,411,986 | 4,071,785 | 5,764,483 | 2,813,070 | ||||||||||||||||||
Reinvested | 135,820 | 7,123 | 8,617 | 4,725 | 442,315 | 901,899 | ||||||||||||||||||
Redeemed | (754,183 | ) | (725,540 | ) | (2,595,338 | ) | (1,715,358 | ) | (2,022,346 | ) | (3,939,534 | ) | ||||||||||||
Net change in Class Y | 2,223,805 | 234,165 | 8,825,265 | 2,361,152 | 4,184,452 | (224,565 | ) | |||||||||||||||||
Change in share transactions | 2,255,102 | 241,185 | 8,801,641 | 2,394,981 | 11,175,959 | 5,209,191 | ||||||||||||||||||
See notes to financial statements.
36
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, Continued
Mid-Cap Fund | Growth Stock Fund | Growth and Income Fund | ||||||||||||||||||||||
Year Ended July 31, 2006 | Year Ended July 31, 2005 | Year Ended July 31, 2006 | Year Ended July 31, 2005 | Year Ended July 31, 2006 | Year Ended July 31, 2005 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 279,078 | $ | 298,283 | $ | (205,468 | ) | $ | 317,987 | $ | 781,745 | $ | 858,063 | |||||||||||
Net realized gains from investments and reimbursement from affiliates | 8,254,095 | 2,966,126 | 17,584,272 | 11,157,491 | 8,440,381 | 15,377,467 | ||||||||||||||||||
Change in unrealized appreciation/ depreciation on investments | (7,208,651 | ) | 11,205,226 | (20,316,335 | ) | 13,535,551 | (8,778,523 | ) | 3,986,953 | |||||||||||||||
Change in net assets resulting from operations | 1,324,522 | 14,469,635 | (2,937,531 | ) | 25,011,029 | 443,603 | 20,222,483 | |||||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (1,303 | ) | (1,294 | ) | — | (10,054 | ) | (14,876 | ) | (24,043 | ) | |||||||||||||
From net realized gains | (44,186 | ) | — | — | — | — | — | |||||||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | — | — | — | — | — | (18,925 | ) | |||||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | — | — | — | (2,290 | ) | — | (2,917 | ) | ||||||||||||||||
From net realized gains | (34,171 | ) | — | — | — | — | — | |||||||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (278,041 | ) | (294,553 | ) | — | (500,630 | ) | (786,135 | ) | (824,567 | ) | |||||||||||||
From net realized gains | (4,339,969 | ) | — | — | — | — | — | |||||||||||||||||
Change in net assets from shareholder distributions | (4,697,670 | ) | (295,847 | ) | — | (512,974 | ) | (801,011 | ) | (870,452 | ) | |||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | (6,408,652 | ) | 39,350,437 | (76,319,431 | ) | (43,127,154 | ) | 14,670,990 | (9,323,376 | ) | ||||||||||||||
Change in net assets | (9,781,800 | ) | 53,524,225 | (79,256,962 | ) | (18,629,099 | ) | 14,313,582 | 10,028,655 | |||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 84,409,561 | 30,885,336 | 242,860,884 | 261,489,983 | 150,969,491 | 140,940,836 | ||||||||||||||||||
End of year | $ | 74,627,761 | $ | 84,409,561 | $ | 163,603,922 | $ | 242,860,884 | $ | 165,283,073 | $ | 150,969,491 | ||||||||||||
Accumulated net investment income (loss) | $ | 5,576 | $ | 5,842 | $ | — | $ | 6,790 | $ | — | $ | 6,258 | ||||||||||||
See notes to financial statements.
37
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, Continued
Mid-Cap Fund | Growth Stock Fund | Growth and Income Fund | ||||||||||||||||||||||
Year Ended July 31, | Year Ended | Year Ended July 31, | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 383,639 | $ | 497,340 | $ | 1,048,926 | $ | 446,889 | $ | 1,221,279 | $ | 351,776 | ||||||||||||
Dividends reinvested | 40,872 | 1,226 | — | 10,351 | 13,876 | 23,091 | ||||||||||||||||||
Cost of shares redeemed | (259,682 | ) | (26,822 | ) | (2,795,356 | ) | (2,346,787 | ) | (1,264,819 | ) | (1,087,566 | ) | ||||||||||||
Change in net assets from Class A | $ | 164,829 | $ | 471,744 | $ | (1,746,430 | ) | $ | (1,889,547 | ) | $ | (29,664 | ) | $ | (712,699 | ) | ||||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 6,200 | $ | 14,195 | $ | 19,030 | $ | 39,720 | ||||||||||||||||
Dividends reinvested | — | — | — | 18,326 | ||||||||||||||||||||
Cost of shares redeemed | (2,913,965 | ) | (1,808,803 | ) | (1,872,404 | ) | (1,313,786 | ) | ||||||||||||||||
Change in net assets from Class B | $ | (2,907,765 | ) | $ | (1,794,608 | ) | $ | (1,853,374 | ) | $ | (1,255,740 | ) | ||||||||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 168,956 | $ | 509,696 | $ | 488,069 | $ | 1,973,665 | $ | 497,890 | $ | 1,864,821 | ||||||||||||
Dividends reinvested | 32,814 | — | — | 2,288 | — | 2,917 | ||||||||||||||||||
Cost of shares redeemed | (137,152 | ) | (65,216 | ) | (472,323 | ) | (62,014 | ) | (489,975 | ) | (50,696 | ) | ||||||||||||
Change in net assets from Class C | $ | 64,618 | $ | 444,480 | $ | 15,746 | $ | 1,913,939 | $ | 7,915 | $ | 1,817,042 | ||||||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 22,275,979 | $ | 62,168,284 | $ | 25,883,377 | $ | 41,048,561 | $ | 52,651,031 | $ | 28,302,401 | ||||||||||||
Dividends reinvested | 3,699,549 | 7,973 | — | 43,331 | 61,585 | 81,808 | ||||||||||||||||||
Cost of shares redeemed | (32,613,627 | ) | (23,742,044 | ) | (97,564,359 | ) | (82,448,830 | ) | (36,166,503 | ) | (37,556,188 | ) | ||||||||||||
Change in net assets from Class Y | $ | (6,638,099 | ) | $ | 38,434,213 | $ | (71,680,982 | ) | $ | (41,356,938 | ) | $ | 16,546,113 | $ | (9,171,979 | ) | ||||||||
Change in net assets from capital transactions | $ | (6,408,652 | ) | $ | 39,350,437 | $ | (76,319,431 | ) | $ | (43,127,154 | ) | $ | 14,670,990 | $ | (9,323,376 | ) | ||||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 30,331 | 43,678 | 118,899 | 54,869 | 91,171 | 27,625 | ||||||||||||||||||
Reinvested | 3,338 | 104 | — | 1,265 | 1,039 | 1,813 | ||||||||||||||||||
Redeemed | (20,699 | ) | (2,215 | ) | (321,307 | ) | (285,341 | ) | (94,788 | ) | (87,861 | ) | ||||||||||||
Net change in Class A | 12,970 | 41,567 | (202,408 | ) | (229,207 | ) | (2,578 | ) | (58,423 | ) | ||||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 755 | 1,835 | 1,543 | 3,308 | ||||||||||||||||||||
Reinvested | — | — | — | 1,503 | ||||||||||||||||||||
Redeemed | (352,973 | ) | (234,287 | ) | (147,728 | ) | (111,674 | ) | ||||||||||||||||
Net change in Class B | (352,218 | ) | (232,452 | ) | (146,185 | ) | (106,863 | ) | ||||||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 13,576 | 44,808 | 60,206 | 250,464 | 39,700 | 155,299 | ||||||||||||||||||
Reinvested | 2,707 | — | — | 297 | — | 240 | ||||||||||||||||||
Redeemed | (11,083 | ) | (5,667 | ) | (58,187 | ) | (7,908 | ) | (38,792 | ) | (4,241 | ) | ||||||||||||
Net change in Class C | 5,200 | 39,141 | 2,019 | 242,853 | 908 | 151,298 | ||||||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 1,781,527 | 5,616,069 | 2,877,489 | 4,886,607 | 3,866,736 | 2,252,011 | ||||||||||||||||||
Reinvested | 301,972 | 665 | — | 5,152 | 4,567 | 6,406 | ||||||||||||||||||
Redeemed | (2,614,371 | ) | (2,071,526 | ) | (10,672,676 | ) | (9,781,134 | ) | (2,662,202 | ) | (3,002,102 | ) | ||||||||||||
Net change in Class Y | (530,872 | ) | 3,545,208 | (7,795,187 | ) | (4,889,375 | ) | 1,209,101 | (743,685 | ) | ||||||||||||||
Change in share transactions | (512,702 | ) | 3,625,916 | (8,347,794 | ) | (5,108,181 | ) | 1,061,246 | (757,673 | ) | ||||||||||||||
See notes to financial statements.
38
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, Continued
Value Fund | High Grade Core Fixed Income Fund | Tax-Free Securities Fund | ||||||||||||||||||||||
Year Ended July 31, 2006 | Year Ended July 31, 2005 | Year Ended July 31, 2006 | Year Ended July 31, 2005 | Year Ended July 31, 2006 | Year Ended July 31, 2005 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 1,896,144 | $ | 1,900,751 | $ | 12,985,935 | $ | 10,857,954 | $ | 12,820,543 | $ | 13,836,140 | ||||||||||||
Net realized gains (losses) from investments and reimbursement from affiliates | 21,230,989 | 24,968,577 | (5,320,883 | ) | 275,702 | 1,944,124 | 2,616,007 | |||||||||||||||||
Change in unrealized appreciation/ depreciation on investments | (8,671,400 | ) | 5,729,456 | (6,239,526 | ) | (345,138 | ) | (10,529,391 | ) | (3,540,022 | ) | |||||||||||||
Change in net assets resulting from operations | 14,455,733 | 32,598,784 | 1,425,526 | 10,788,518 | 4,235,276 | 12,912,125 | ||||||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (29,785 | ) | (21,647 | ) | (169,659 | ) | (175,491 | ) | (277,861 | ) | (368,370 | ) | ||||||||||||
From net realized gains | — | — | (643 | ) | (14,334 | ) | (82,571 | ) | (147,134 | ) | ||||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | (2,951 | ) | (5,090 | ) | (118,746 | ) | (119,901 | ) | (90,662 | ) | (108,644 | ) | ||||||||||||
From net realized gains | — | — | (560 | ) | (12,425 | ) | (41,925 | ) | (52,587 | ) | ||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | (6,505 | ) | (86 | ) | (40,060 | ) | (19,664 | ) | (322 | ) | (319 | ) | ||||||||||||
From net realized gains | — | — | (179 | ) | (433 | ) | (134 | ) | (152 | ) | ||||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (1,881,799 | ) | (1,886,095 | ) | (12,637,055 | ) | (10,577,047 | ) | (12,451,699 | ) | (13,358,806 | ) | ||||||||||||
From net realized gains | — | — | (44,146 | ) | (777,307 | ) | (4,023,324 | ) | (4,823,386 | ) | ||||||||||||||
Change in net assets from shareholder distributions | (1,921,040 | ) | (1,912,918 | ) | (13,011,048 | ) | (11,696,602 | ) | (16,968,498 | ) | (18,859,398 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | (48,836,203 | ) | (24,428,322 | ) | 2,876,058 | 27,173,989 | (19,727,486 | ) | (23,752,446 | ) | ||||||||||||||
Change in net assets | (36,301,510 | ) | 6,257,544 | (8,709,464 | ) | 26,265,905 | (32,460,708 | ) | (29,699,719 | ) | ||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 188,482,976 | 182,225,432 | 304,023,308 | 277,757,403 | 328,181,828 | 357,881,547 | ||||||||||||||||||
End of year | $ | 152,181,466 | $ | 188,482,976 | $ | 295,313,844 | $ | 304,023,308 | $ | 295,721,120 | $ | 328,181,828 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 1 | $ | 40,026 | $ | (54,821 | ) | $ | (54,617 | ) | $ | 35 | $ | 36 | ||||||||||
See notes to financial statements.
39
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, Continued
Value Fund | High Grade Core Fixed Income Fund | Tax-Free Securities Fund | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 656,723 | $ | 465,501 | $ | 465,407 | $ | 423,285 | $ | 1,795,604 | $ | 807,895 | ||||||||||||
Dividends reinvested | 17,303 | 12,080 | 121,005 | 133,586 | 167,114 | 219,060 | ||||||||||||||||||
Cost of shares redeemed | (826,433 | ) | (482,258 | ) | (1,310,557 | ) | (1,194,430 | ) | (4,433,332 | ) | (1,807,577 | ) | ||||||||||||
Change in net assets from Class A | $ | (152,407 | ) | $ | (4,677 | ) | $ | (724,145 | ) | $ | (637,559 | ) | $ | (2,470,614 | ) | $ | (780,622 | ) | ||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 83,910 | $ | 40,800 | $ | — | $ | 112,161 | $ | 58,339 | $ | — | ||||||||||||
Dividends reinvested | 2,726 | 5,027 | 103,584 | 116,795 | 77,187 | 99,929 | ||||||||||||||||||
Cost of shares redeemed | (231,741 | ) | (158,300 | ) | (1,037,431 | ) | (599,157 | ) | (982,114 | ) | (747,598 | ) | ||||||||||||
Change in net assets from Class B | $ | (145,105 | ) | $ | (112,473 | ) | $ | (933,847 | ) | $ | (370,201 | ) | $ | (846,588 | ) | $ | (647,669 | ) | ||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 388,540 | $ | 1,793,426 | $ | 380,413 | $ | 1,325,473 | $ | — | $ | 70 | ||||||||||||
Dividends reinvested | 6,493 | 74 | 39,810 | 19,803 | 455 | 470 | ||||||||||||||||||
Cost of shares redeemed | (308,116 | ) | (81,412 | ) | (241,584 | ) | (160,222 | ) | — | (70 | ) | |||||||||||||
Change in net assets from Class C | $ | 86,917 | $ | 1,712,088 | $ | 178,639 | $ | 1,185,054 | $ | 455 | $ | 470 | ||||||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 20,026,418 | $ | 31,949,876 | $ | 73,928,218 | $ | 90,979,692 | $ | 34,670,344 | $ | 35,715,265 | ||||||||||||
Dividends reinvested | 58,902 | 48,275 | 1,153,025 | 1,643,366 | 3,949,344 | 4,788,015 | ||||||||||||||||||
Cost of shares redeemed | (68,710,928 | ) | (58,021,411 | ) | (70,725,832 | ) | (65,626,363 | ) | (55,030,427 | ) | (62,827,905 | ) | ||||||||||||
Change in net assets from Class Y | $ | (48,625,608 | ) | $ | (26,023,260 | ) | $ | 4,355,411 | $ | 26,996,695 | $ | (16,410,739 | ) | $ | (22,324,625 | ) | ||||||||
Change in net assets from capital transactions | $ | (48,836,203 | ) | $ | (24,428,322 | ) | $ | 2,876,058 | $ | 27,173,989 | $ | (19,727,486 | ) | $ | (23,752,446 | ) | ||||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 65,517 | 50,251 | 43,068 | 38,242 | 175,783 | 75,198 | ||||||||||||||||||
Reinvested | 1,698 | 1,310 | 11,243 | 12,021 | 16,297 | 20,481 | ||||||||||||||||||
Redeemed | (82,367 | ) | (52,552 | ) | (122,019 | ) | (107,605 | ) | (430,595 | ) | (168,914 | ) | ||||||||||||
Net change in Class A | (15,152 | ) | (991 | ) | (67,708 | ) | (57,342 | ) | (238,515 | ) | (73,235 | ) | ||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 8,607 | 4,462 | — | 10,041 | 5,577 | — | ||||||||||||||||||
Reinvested | 272 | 553 | 9,638 | 10,530 | 7,531 | 9,347 | ||||||||||||||||||
Redeemed | (23,084 | ) | (17,920 | ) | (96,960 | ) | (53,979 | ) | (95,970 | ) | (69,726 | ) | ||||||||||||
Net change in Class B | (14,205 | ) | (12,905 | ) | (87,322 | ) | (33,408 | ) | (82,862 | ) | (60,379 | ) | ||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 39,306 | 195,778 | 35,642 | 119,790 | — | 7 | ||||||||||||||||||
Reinvested | 651 | 8 | 3,711 | 1,791 | 45 | 44 | ||||||||||||||||||
Redeemed | (30,674 | ) | (8,728 | ) | (22,508 | ) | (14,525 | ) | — | (7 | ) | |||||||||||||
Net change in Class C | 9,283 | 187,058 | 16,845 | 107,056 | 45 | 44 | ||||||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 1,981,473 | 3,461,432 | 6,801,580 | 8,139,234 | 3,336,077 | 3,335,237 | ||||||||||||||||||
Reinvested | 5,768 | 5,235 | 106,477 | 146,760 | 384,175 | 446,226 | ||||||||||||||||||
Redeemed | (6,818,213 | ) | (6,300,163 | ) | (6,521,294 | ) | (5,872,449 | ) | (5,331,997 | ) | (5,835,291 | ) | ||||||||||||
Net change in Class Y | (4,830,972 | ) | (2,833,496 | ) | 386,763 | 2,413,545 | (1,611,745 | ) | (2,053,828 | ) | ||||||||||||||
Change in share transactions | (4,851,046 | ) | (2,660,334 | ) | 248,578 | 2,429,851 | (1,933,077 | ) | (2,187,398 | ) | ||||||||||||||
See notes to financial statements.
40
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, Continued
High Grade Short Intermediate Fixed Income Fund | Tax-Free Short Intermediate Securities Fund | U.S. Government Short Fixed Income Fund | ||||||||||||||||||||||
Year Ended July 31, 2006 | Year Ended July 31, 2005 | Year Ended July 31, 2006 | Year Ended July 31, 2005 | Year Ended July 31, 2006 | Year Ended July 31, 2005 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 2,800,923 | $ | 2,614,664 | $ | 2,095,527 | $ | 1,754,753 | $ | 4,115,742 | $ | 3,631,065 | ||||||||||||
Net realized losses from investments and reimbursement from affiliates | (1,689,160 | ) | (357,386 | ) | (645,170 | ) | (63,008 | ) | (831,923 | ) | (694,029 | ) | ||||||||||||
Change in unrealized appreciation/ depreciation on investments | 625,450 | (998,722 | ) | (450,125 | ) | (557,077 | ) | 783,679 | (399,825 | ) | ||||||||||||||
Change in net assets resulting from operations | 1,737,213 | 1,258,556 | 1,000,232 | 1,134,668 | 4,067,498 | 2,537,211 | ||||||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (52,956 | ) | (45,749 | ) | (92,367 | ) | (103,438 | ) | (121,419 | ) | (129,299 | ) | ||||||||||||
From net realized gains | — | (235 | ) | — | — | — | — | |||||||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | — | — | — | — | (31,746 | ) | (18,454 | ) | ||||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | (17,477 | ) | (7,612 | ) | (204 | ) | (153 | ) | (37,634 | ) | (12,539 | ) | ||||||||||||
From net realized gains | — | (22 | ) | — | — | — | — | |||||||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (2,730,489 | ) | (2,561,303 | ) | (2,002,956 | ) | (1,651,185 | ) | (3,924,943 | ) | (3,470,787 | ) | ||||||||||||
From net realized gains | — | (12,012 | ) | — | — | — | — | |||||||||||||||||
Change in net assets from shareholder distributions | (2,800,922 | ) | (2,626,933 | ) | (2,095,527 | ) | (1,754,776 | ) | (4,115,742 | ) | (3,631,079 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | (25,145,868 | ) | 6,691,216 | (2,150,625 | ) | (2,913,326 | ) | (34,084,842 | ) | (89,404,837 | ) | |||||||||||||
Change in net assets | (26,209,577 | ) | 5,322,839 | (3,245,920 | ) | (3,533,434 | ) | (34,133,086 | ) | (90,498,705 | ) | |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 88,402,459 | 83,079,620 | 68,863,664 | 72,397,098 | 135,343,293 | 225,841,998 | ||||||||||||||||||
End of year | $ | 62,192,882 | $ | 88,402,459 | $ | 65,617,744 | $ | 68,863,664 | $ | 101,210,207 | $ | 135,343,293 | ||||||||||||
Undistributed net investment income | $ | 52 | $ | 51 | $ | 762 | $ | 762 | $ | 7,143 | $ | 7,143 | ||||||||||||
See notes to financial statements.
41
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, Continued
High Grade Short Intermediate Fixed Income Fund | Tax-Free Short Intermediate Securities Fund | U.S. Government Short Fixed Income Fund | ||||||||||||||||||||||
Year Ended July 31, | Year Ended July 31, | Year Ended July 31, | Year Ended July 31, | Year Ended July 31, | Year Ended | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 113,780 | $ | 293,228 | $ | 221,299 | $ | 546,100 | $ | 63,818 | $ | 7,255 | ||||||||||||
Dividends reinvested | 42,163 | 34,677 | 79,015 | 87,925 | 41,089 | 33,286 | ||||||||||||||||||
Cost of shares redeemed | (654,246 | ) | (246,451 | ) | (1,239,673 | ) | (1,591,226 | ) | (4,297,597 | ) | (2,188,736 | ) | ||||||||||||
Change in net assets from Class A | $ | (498,303 | ) | $ | 81,454 | $ | (939,359 | ) | $ | (957,201 | ) | $ | (4,192,690 | ) | $ | (2,148,195 | ) | |||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 70,821 | $ | 97,737 | ||||||||||||||||||||
Dividends reinvested | 28,091 | 17,513 | ||||||||||||||||||||||
Cost of shares redeemed | (468,971 | ) | (460,531 | ) | ||||||||||||||||||||
Change in net assets from Class B | $ | (370,059 | ) | $ | (345,281 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 177,758 | $ | 689,422 | $ | — | $ | 70 | $ | 544,880 | $ | 2,009,183 | ||||||||||||
Dividends reinvested | 17,275 | 7,520 | 203 | 152 | 36,917 | 11,825 | ||||||||||||||||||
Cost of shares redeemed | (142,973 | ) | (66,960 | ) | — | (70 | ) | (901,056 | ) | (191,257 | ) | |||||||||||||
Change in net assets from Class C | $ | 52,060 | $ | 629,982 | $ | 203 | $ | 152 | $ | (319,259 | ) | $ | 1,829,751 | |||||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 13,866,301 | $ | 37,424,651 | $ | 14,789,608 | $ | 16,459,279 | $ | 37,896,312 | $ | 60,660,048 | ||||||||||||
Dividends reinvested | 298,346 | 260,539 | 2,897 | 35,533 | 1,155,588 | 534,341 | ||||||||||||||||||
Cost of shares redeemed | (38,864,272 | ) | (31,705,410 | ) | (16,003,974 | ) | (18,451,089 | ) | (68,254,734 | ) | (149,935,501 | ) | ||||||||||||
Change in net assets from Class Y | $ | (24,699,625 | ) | $ | 5,979,780 | $ | (1,211,469 | ) | $ | (1,956,277 | ) | $ | (29,202,834 | ) | $ | (88,741,112 | ) | |||||||
Change in net assets from capital transactions | $ | (25,145,868 | ) | $ | 6,691,216 | $ | (2,150,625 | ) | $ | (2,913,326 | ) | $ | (34,084,842 | ) | $ | (89,404,837 | ) | |||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 11,773 | 30,112 | 21,778 | 52,729 | 6,369 | 722 | ||||||||||||||||||
Reinvested | 4,408 | 3,550 | 7,808 | 8,534 | 4,099 | 3,305 | ||||||||||||||||||
Redeemed | (68,229 | ) | (25,129 | ) | (122,403 | ) | (154,728 | ) | (428,482 | ) | (216,967 | ) | ||||||||||||
Net change in Class A | (52,048 | ) | 8,533 | (92,817 | ) | (93,465 | ) | (418,014 | ) | (212,940 | ) | |||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 7,064 | 9,664 | ||||||||||||||||||||||
Reinvested | 2,803 | 1,740 | ||||||||||||||||||||||
Redeemed | (46,737 | ) | (45,699 | ) | ||||||||||||||||||||
Net change in Class B | (36,870 | ) | (34,295 | ) | ||||||||||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 18,642 | 70,465 | — | 7 | 54,349 | 199,590 | ||||||||||||||||||
Reinvested | 1,809 | 774 | 20 | 15 | 3,683 | 1,176 | ||||||||||||||||||
Redeemed | (14,950 | ) | (6,896 | ) | — | (7 | ) | (89,871 | ) | (19,041 | ) | |||||||||||||
Net change in Class C | 5,501 | 64,343 | 20 | 15 | (31,839 | ) | 181,725 | |||||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 1,444,750 | 3,823,881 | 1,449,315 | 1,588,466 | 3,775,621 | 6,017,407 | ||||||||||||||||||
Reinvested | 31,128 | 26,651 | 286 | 3,413 | 115,201 | 53,033 | ||||||||||||||||||
Redeemed | (4,049,088 | ) | (3,246,236 | ) | (1,573,015 | ) | (1,779,569 | ) | (6,801,135 | ) | (14,879,103 | ) | ||||||||||||
Net change in Class Y | (2,573,210 | ) | 604,296 | (123,414 | ) | (187,690 | ) | (2,910,313 | ) | (8,808,663 | ) | |||||||||||||
Change in share transactions | (2,619,757 | ) | 677,172 | (216,211 | ) | (281,140 | ) | (3,397,036 | ) | (8,874,173 | ) | |||||||||||||
See notes to financial statements.
42
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments
July 31, 2006
Shares | Security | Value | |||
Common Stocks (98.8%) | |||||
China (7.4%) | |||||
Consumer Discretionary (3.4%) | |||||
1,399,000 | China Resources Enterprise Ltd. | $ | 3,082,522 | ||
Energy (1.2%) | |||||
586,000 | China Shenhua Energy Co. Ltd. | 1,054,361 | |||
Financials (0.1%) | |||||
13,500 | Ping An Insurance Co. of China Ltd. (Group) | 45,174 | |||
Industrials (1.6%) | |||||
628,000 | Cosco Pacific Ltd. | 1,396,651 | |||
Telecommunications (1.1%) | |||||
157,500 | China Mobile Ltd. | 1,014,540 | |||
6,593,248 | |||||
Hong Kong (23.0%) | |||||
Consumer Discretionary (7.4%) | |||||
319,000 | Cheung Kong Holdings Ltd. | 3,456,903 | |||
629,200 | Li & Fung Ltd. | 1,318,341 | |||
536,000 | Shangri-La Asia Ltd. | 1,102,367 | |||
270,500 | Yue Yuen Industrial Holdings Ltd. | 757,201 | |||
6,634,812 | |||||
Energy (2.9%) | |||||
3,082,500 | CNOOC Ltd. | 2,622,341 | |||
Financials (4.3%) | |||||
4,120 | Dah Sing Banking Group Ltd. | 8,145 | |||
753,000 | Hang Lung Group Ltd. | 1,899,484 | |||
3,732 | Standard Chartered PLC | 95,295 | |||
198,000 | Wing Hang Bank Ltd. | 1,815,660 | |||
3,818,584 | |||||
Industrials (4.2%) | |||||
288,242 | Kerry Properties Ltd. | 949,690 | |||
270,000 | Lung Kee (Bermuda) Holdings Ltd. | 150,465 | |||
63,500 | Swire Pacific Ltd., Class A | 659,526 | |||
622,500 | Swire Pacific Ltd., Class B | 1,179,320 | |||
615,500 | Techtronic Industries Co. Ltd. | 828,599 | |||
3,767,600 | |||||
Real Estate Investment Trust (0.3%) | |||||
145,000 | Link REIT (b) | 304,560 | |||
Telecommunications (0.4%) | |||||
356,000 | SmarTone Telecommunications Holdings Ltd. | 336,303 | |||
Utilities (3.5%) | |||||
1,372,000 | Hong Kong & China Gas Co. Ltd. | 3,104,256 | |||
20,588,456 | |||||
India (3.0%) | |||||
Financials (1.7%) | |||||
27,600 | HDFC Bank Ltd., ADR | 1,494,540 | |||
Information Technology (1.3%) | |||||
27,600 | Infosys Technologies Ltd., ADR | 1,134,084 | |||
2,628,624 | |||||
Shares | Security | Value | |||
Common Stocks, Continued | |||||
Indonesia (0.8%) | |||||
Consumer Discretionary (0.8%) | |||||
636,500 | PT Astra International, Inc. | $ | 674,065 | ||
Malaysia (11.0%) | |||||
Consumer Discretionary (3.7%) | |||||
608,900 | Astro All Asia Networks PLC | 782,776 | |||
242,700 | Genting Berhad | 1,659,601 | |||
233,200 | Tanjong PLC | 880,241 | |||
3,322,618 | |||||
Consumer Staples (5.6%) | |||||
1,112,100 | IOI Corp. Berhad | 4,958,213 | |||
Financials (1.7%) | |||||
884,300 | Bumiputra-Commerce Holdings Bhd | 1,487,540 | |||
9,768,371 | |||||
Philippines (2.2%) | |||||
Financials (1.2%) | |||||
131,039 | Ayala Corp. | 1,082,862 | |||
Telecommunications (1.0%) | |||||
4,991 | Philippine Long Distance Telephone Co. | 200,882 | |||
17,000 | Philippine Long Distance Telephone Co. ADR | 666,230 | |||
867,112 | |||||
1,949,974 | |||||
Singapore (15.4%) | |||||
Consumer Staples (3.5%) | |||||
1,222,000 | Fraser & Neave Ltd. | 3,127,577 | |||
Financials (4.5%) | |||||
130,000 | Great Eastern Holdings Ltd. | 1,325,942 | |||
658,346 | Oversea-Chinese Banking Corp. Ltd. | 2,648,399 | |||
3,974,341 | |||||
Industrials (4.9%) | |||||
450,000 | Keppel Corp. Ltd. | 4,361,735 | |||
Telecommunications (2.5%) | |||||
956,285 | Singapore Telecommunications Ltd. | 1,569,071 | |||
479,000 | StarHub Ltd. | 655,458 | |||
2,224,529 | |||||
13,688,182 | |||||
South Korea (17.3%) | |||||
Construction (0.9%) | |||||
12,509 | GS Engineering & Construction Corp. | 838,475 | |||
Consumer Discretionary (6.3%) | |||||
21,100 | Hyundai Mobis | 1,754,650 | |||
53,100 | LG Corp. | 1,523,817 | |||
4,609 | Shinsegae Co. Ltd. | 2,278,433 | |||
5,556,900 | |||||
See notes to financial statements.
43
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security | Value | |||
Common Stocks, continued | |||||
South Korea, continued | |||||
Financials (5.2%) | |||||
1 | Kookmin Bank | $ | 87 | ||
9,846 | Samsung Fire & Marine Insurance Co. Ltd. | 1,330,262 | |||
66,160 | Shinhan Financial Group Co. Ltd. | 3,256,724 | |||
4,587,073 | |||||
Information Technology (4.9%) | |||||
18,750 | S1 Corp. | 820,853 | |||
5,595 | Samsung Electronics Co. Ltd. | 3,562,798 | |||
4,383,651 | |||||
15,366,099 | |||||
Taiwan (12.9%) | |||||
Consumer Staples (1.2%) | |||||
1,330,000 | Uni-President Enterprises Corp. | 1,049,101 | |||
Financials (0.9%) | |||||
1,310,000 | E.SUN Financial Holding Co. Ltd. | 793,017 | |||
Industrials (1.9%) | |||||
356,273 | Novatek Microelectronics Corp. Ltd. | 1,753,700 | |||
Information Technology (7.9%) | |||||
383,999 | Advantech Co. Ltd. | 1,174,022 | |||
161,000 | Asustek Computer, Inc. | 362,284 | |||
896,250 | Delta Electronics, Inc. | 2,419,556 | |||
186,143 | Hon Hai Precision Industry Co. Ltd. | 1,104,065 | |||
766,551 | Powertech Technology, Inc. | 2,020,200 | |||
7,080,127 | |||||
Shares | Security | Value | |||
Common Stocks, continued | |||||
Taiwan, continued | |||||
Telecommunications (1.0%) | |||||
459,000 | Chunghwa Telecom Co. Ltd. | $ | 846,206 | ||
11,522,151 | |||||
Thailand (3.7%) | |||||
Energy (1.9%) | |||||
266,500 | PTT PCL | 1,661,665 | |||
Financials (1.8%) | |||||
968,500 | Kasikornbank Public Co. Ltd. | 1,637,622 | |||
3,299,287 | |||||
United Kingdom (2.1%) | |||||
Financials (2.1%) | |||||
75,120 | Standard Chartered PLC | 1,899,783 | |||
Total Common Stocks (Cost $74,363,258) | 87,978,240 | ||||
Investment Company (0.8%) | |||||
673,709 | Victory Institutional Money Market Fund, Investor Shares | 673,709 | |||
Total Investment Company (Cost $673,709) | 673,709 | ||||
Total Investments (Cost $75,036,967) (a)—99.6% | 88,651,949 | ||||
Other assets in excess of liabilities—0.4% | 393,177 | ||||
Net Assets—100.0% | $ | 89,045,126 | |||
(a) | Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of losses recognized for financial reporting purposes in excess of federal income tax reporting of approximately $99,184. Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: |
Unrealized appreciation | $ | 15,136,184 | ||
Unrealized depreciation | (1,620,386 | ) | ||
Net unrealized appreciation | $ | 13,515,798 | ||
(b) | Non-income producing security. |
ADR—American Depositary Receipt
PCL—Public Company Limited
PLC—Public Limited Company
At July 31, 2006 the Fund’s foreign currency exchange contracts were as follows:
Currency | Delivery Date | Contract Amount in Local Currency | Contract Value in USD | Value | Unrealized Appreciation (Depreciation) | |||||||||
Short: | ||||||||||||||
Hong Kong Dollar | 8/1/06 | 217,265 | $ | 27,968 | $ | 27,973 | $ | 5 | ||||||
Singapore Dollar | 8/1/06 | 292,908 | 185,244 | 184,928 | (316 | ) | ||||||||
Singapore Dollar | 8/2/06 | 34,189 | 21,603 | 21,547 | (56 | ) | ||||||||
Total Short Contracts | $ | 234,815 | $ | 234,448 | $ | (367 | ) | |||||||
Long: | ||||||||||||||
Hong Kong Dollar | 8/1/06 | 2,679,244 | $ | 344,890 | $ | 344,823 | $ | (67 | ) | |||||
Total Long Contracts | $ | 344,890 | $ | 344,823 | $ | (67 | ) | |||||||
See notes to financial statements.
44
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments
July 31, 2006
Shares | Security Description | Value | |||
Common Stocks (98.9%) | |||||
Australia (2.1%) | |||||
Energy (0.8%) | |||||
51,501 | Woodside Petroleum Ltd. | $ | 1,688,280 | ||
Financials (0.7%) | |||||
85,847 | Westpac Banking Corp. | 1,446,885 | |||
Information Technology (0.6%) | |||||
217,760 | Computershare Ltd. | 1,311,254 | |||
4,446,419 | |||||
Austria (0.6%) | |||||
Financials (0.6%) | |||||
22,770 | Erste Bank de Oesterreichischen Sparkassen AG | 1,313,341 | |||
Belgium (0.7%) | |||||
Consumer Staples (0.7%) | |||||
28,300 | InBev NV | 1,485,555 | |||
Brazil (2.4%) | |||||
Energy (0.7%) | |||||
17,049 | Petroleo Brasileiro SA, ADR | 1,566,462 | |||
Materials (1.2%) | |||||
22,900 | Aracruz Celulose SA, ADR | 1,144,542 | |||
68,200 | Companhia Vale do Rio Doce, ADR | 1,357,180 | |||
2,501,722 | |||||
Utilities (0.5%) | |||||
23,900 | Companhia Energetica de Minas Gerais SA, ADR | 1,042,279 | |||
5,110,463 | |||||
Canada (4.0%) | |||||
Energy (1.3%) | |||||
29,385 | Cameco Corp. | 1,172,462 | |||
19,462 | Suncor Energy, Inc. | 1,577,395 | |||
2,749,857 | |||||
Financials (1.0%) | |||||
13,479 | IGM Financial, Inc. | 564,107 | |||
46,978 | Manulife Financial Corp. | 1,488,263 | |||
2,052,370 | |||||
Information Technology (0.4%) | |||||
90,441 | Celestica, Inc. (b) | 858,285 | |||
Materials (1.3%) | |||||
30,800 | Alcan, Inc. | 1,409,408 | |||
19,500 | Inco Ltd. | 1,516,515 | |||
2,925,923 | |||||
8,586,435 | |||||
China (1.5%) | |||||
Consumer Discretionary (0.4%) | |||||
2,852,000 | Denway Motors Ltd. | 917,644 | |||
Energy (1.1%) | |||||
2,148,000 | China Petroleum & Chemical Corp. | 1,205,328 | |||
1,610,000 | Yanzhou Coal Mining Co. Ltd. | 1,133,438 | |||
2,338,766 | |||||
3,256,410 | |||||
Shares | Security Description | Value | |||
Common Stocks, continued | |||||
Denmark (1.1%) | |||||
Industrials (1.1%) | |||||
82,702 | Vestas Wind Systems A/S (b) | $ | 2,230,405 | ||
Finland (1.0%) | |||||
Consumer Discretionary (0.5%) | |||||
78,190 | Nokian Renkaat Oyj | 1,080,535 | |||
Information Technology (0.5%) | |||||
52,300 | Nokia Oyj | 1,037,370 | |||
2,117,905 | |||||
France (11.0%) | |||||
Consumer Discretionary (1.3%) | |||||
11,222 | LVMH Moet Hennessy Louis Vuitton SA | 1,127,274 | |||
47,600 | Vivendi Universal SA | 1,611,673 | |||
2,738,947 | |||||
Consumer Staples (1.1%) | |||||
37,096 | Carrefour SA | 2,312,578 | |||
Energy (2.3%) | |||||
24,574 | Technip SA | 1,319,468 | |||
51,382 | Total SA, ADR | 3,505,794 | |||
4,825,262 | |||||
Financials (2.2%) | |||||
38,847 | Axa, ADR | 1,335,948 | |||
18,891 | BNP Paribas SA | 1,838,529 | |||
41,891 | Credit Agricole S.A. | 1,683,752 | |||
4,858,229 | |||||
Health Care (0.5%) | |||||
10,982 | Essilor International SA | 1,098,256 | |||
Industrials (1.3%) | |||||
26,311 | Schneider Electric SA | 2,705,164 | |||
Information Technology (0.5%) | |||||
72,000 | STMicroelectronics NV, NY Registered Shares | 1,077,120 | |||
Telecommunications (0.7%) | |||||
69,200 | France Telecom SA | 1,449,474 | |||
Utilities (1.1%) | |||||
23,015 | Suez SA | 954,157 | |||
26,000 | Veolia Environnement | 1,411,975 | |||
2,366,132 | |||||
23,431,162 | |||||
Germany (4.1%) | |||||
Consumer Discretionary (1.1%) | |||||
47,848 | Adidas-Salomon AG | 2,232,410 | |||
Financials (0.5%) | |||||
6,936 | Allianz AG | 1,089,176 | |||
Industrials (0.7%) | |||||
18,460 | Siemens AG | 1,489,843 | |||
Information Technology (0.5%) | |||||
21,128 | SAP AG, ADR | 964,071 | |||
See notes to financial statements.
45
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security Description | Value | |||
Common Stocks, continued | |||||
Germany, continued | |||||
Utilities (1.3%) | |||||
13,993 | E.ON AG | $ | 1,688,896 | ||
14,388 | RWE AG | 1,261,541 | |||
2,950,437 | |||||
8,725,937 | |||||
Greece (0.4%) | |||||
Consumer Discretionary (0.4%) | |||||
35,656 | Folli-Follie SA, Registered Shares | 825,185 | |||
Hong Kong (3.0%) | |||||
Consumer Discretionary (1.5%) | |||||
244,500 | Esprit Holdings Ltd. | 1,859,735 | |||
587,462 | Shangri-La Asia Ltd. | 1,208,206 | |||
3,067,941 | |||||
Industrials (0.7%) | |||||
77,000 | Hutchison Whampoa Ltd. | 702,622 | |||
1,256,500 | Johnson Electric Holdings Ltd. | 881,340 | |||
1,583,962 | |||||
Telecommunications (0.8%) | |||||
715,000 | Foxconn International Holdings Ltd. (b) | 1,661,913 | |||
6,313,816 | |||||
India (1.5%) | |||||
Financials (0.5%) | |||||
21,000 | HDFC Bank Ltd., ADR | 1,137,150 | |||
Information Technology (1.0%) | |||||
31,852 | Infosys Technologies Ltd., ADR | 1,308,799 | |||
52,617 | Patni Computer Systems Ltd., ADR | 697,175 | |||
2,005,974 | |||||
3,143,124 | |||||
Israel (0.9%) | |||||
Health Care (0.5%) | |||||
34,172 | Teva Pharmaceutical Industries Ltd., ADR | 1,130,410 | |||
Information Technology (0.4%) | |||||
47,500 | Check Point Software Technologies Ltd. (b) | 798,000 | |||
1,928,410 | |||||
Italy (3.2%) | |||||
Energy (1.3%) | |||||
58,333 | ENI SpA | 1,788,821 | |||
37,924 | Saipem SpA | 873,798 | |||
2,662,619 | |||||
Financials (1.9%) | |||||
541,545 | UniCredito Italiano SpA | 4,167,274 | |||
6,829,893 | |||||
Japan (18.3%) | |||||
Consumer Discretionary (3.4%) | |||||
61,400 | Denso Corp. | 2,105,051 | |||
293,000 | Isuzu Motors Ltd. | 1,058,205 | |||
97,300 | Nissan Motor Co. Ltd. | 1,049,139 |
Shares | Security Description | Value | |||
Common Stocks, continued | |||||
Japan, continued | |||||
Consumer Discretionary, continued | |||||
107,000 | Sharp Corp. | $ | 1,808,069 | ||
23,800 | Toyota Motor Corp. | 1,258,205 | |||
7,278,669 | |||||
Consumer Staples (0.6%) | |||||
115,000 | Ajinomoto Co., Inc. | 1,294,164 | |||
Financials (5.3%) | |||||
130,000 | Bank of Yokohama Ltd. (The) | 1,042,223 | |||
68,000 | Chugoku Bank Ltd. (The) | 910,582 | |||
194,000 | Joyo Bank Ltd. (The) | 1,186,374 | |||
57 | Millea Holdings, Inc. | 1,103,900 | |||
68,100 | Nomura Holdings, Inc. | 1,208,964 | |||
10,280 | ORIX Corp. | 2,694,878 | |||
173 | Sumitomo Mitsui Financial Group, Inc. | 1,841,227 | |||
118,000 | Sumitomo Trust & Banking Co. Ltd. (The) | 1,252,779 | |||
11,240,927 | |||||
Health Care (1.2%) | |||||
71,000 | Shionogi & Co. Ltd. | 1,347,160 | |||
17,000 | Takeda Pharmaceutical Co. Ltd. | 1,097,444 | |||
2,444,604 | |||||
Industrials (3.0%) | |||||
55,000 | JS Group Corp. | 1,129,940 | |||
235,000 | Marubeni Corp. | 1,248,495 | |||
12,300 | SMC Corp. | 1,574,117 | |||
70,000 | Sumitomo Corp. | 991,712 | |||
54,700 | THK Co. Ltd. | 1,455,422 | |||
6,399,686 | |||||
Information Technology (2.9%) | |||||
30,750 | Canon, Inc. | 1,478,082 | |||
28,100 | Ibiden Co. Ltd. | 1,358,056 | |||
22,900 | Nidec Corp. | 1,626,154 | |||
9,400 | Nintendo Co. Ltd. | 1,755,683 | |||
6,217,975 | |||||
Materials (0.8%) | |||||
22,000 | Nitto Denko Corp. | 1,598,709 | |||
Telecommunications (0.6%) | |||||
209 | KDDI Corp. | 1,356,504 | |||
Utilities (0.5%) | |||||
304,000 | OSAKA Gas Co. Ltd. | 1,026,328 | |||
38,857,566 | |||||
Mexico (1.1%) | |||||
Consumer Staples (0.6%) | |||||
42,905 | Wal-Mart de Mexico SA de CV, ADR | 1,330,081 | |||
Industrials (0.5%) | |||||
36,600 | Cemex SA de CV, ADR | 1,036,512 | |||
2,366,593 | |||||
Netherlands (2.3%) | |||||
Consumer Discretionary (0.5%) | |||||
34,900 | Koninklijke (Royal) Philips Electronics NV | 1,149,257 | |||
See notes to financial statements.
46
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security Description | Value | |||
Common Stocks, continued | |||||
Netherlands, continued | |||||
Consumer Staples (0.6%) | |||||
24,600 | Royal Numico NV | $ | 1,180,106 | ||
Financials (1.2%) | |||||
41,577 | ABN AMRO Holding NV | 1,150,727 | |||
35,313 | ING Groep NV | 1,433,340 | |||
2,584,067 | |||||
4,913,430 | |||||
Norway (0.5%) | |||||
Materials (0.5%) | |||||
74,000 | Norske Skogsindustrier ASA | 1,139,803 | |||
Russia (1.2%) | |||||
Energy (0.7%) | |||||
16,396 | LUKOIL, ADR | 1,423,173 | |||
Materials (0.5%) | |||||
43,878 | Evraz Group SA, GDR (c) | 1,053,072 | |||
2,476,245 | |||||
Singapore (2.1%) | |||||
Financials (1.4%) | |||||
250,000 | DBS Group Holdings Ltd. | 2,866,646 | |||
Industrials (0.7%) | |||||
160,000 | Keppel Corp. Ltd. | 1,550,839 | |||
4,417,485 | |||||
South Africa (0.3%) | |||||
Energy (0.3%) | |||||
15,000 | Sasol Ltd. | 540,729 | |||
South Korea (1.7%) | |||||
Financials (0.6%) | |||||
14,680 | Kookmin Bank | 1,282,271 | |||
Information Technology (1.1%) | |||||
3,800 | Samsung Electronics Co. Ltd. | 2,419,773 | |||
3,702,044 | |||||
Spain (3.9%) | |||||
Financials (2.5%) | |||||
118,318 | Banco Bilbao Vizcaya Argentaria SA | 2,514,575 | |||
184,139 | Banco Santander Central Hispano SA | 2,789,272 | |||
5,303,847 | |||||
Telecommunications (1.4%) | |||||
172,453 | Telefonica SA | 2,916,212 | |||
8,220,059 | |||||
Sweden (0.6%) | |||||
Consumer Discretionary (0.6%) | |||||
112,000 | Eniro AB | 1,290,340 | |||
Switzerland (9.7%) | |||||
Consumer Staples (1.2%) | |||||
7,949 | Nestle SA | 2,605,620 | |||
Financials (1.7%) | |||||
43,791 | Credit Suisse Group | 2,454,389 | |||
20,046 | UBS AG, Registered Shares | 1,090,944 | |||
3,545,333 | |||||
Shares | Security Description | Value | |||
Common Stocks, continued | |||||
Switzerland, continued | |||||
Health Care (4.1%) | |||||
69,113 | Novartis AG | $ | 3,927,003 | ||
11,990 | Roche Holding AG, Genusschien | 2,134,458 | |||
2,280 | Serono SA, Class B | 1,542,920 | |||
9,750 | Synthes, Inc. | 1,125,427 | |||
8,729,808 | |||||
Materials (2.7%) | |||||
18,600 | Ciba Specialty Chemicals AG, Registered Shares | 1,029,637 | |||
20,990 | Holcim Ltd. | 1,638,831 | |||
19,900 | Lonza Group AG, Registered Shares | 1,351,524 | |||
11,945 | Syngenta AG | 1,717,664 | |||
5,737,656 | |||||
20,618,417 | |||||
Taiwan (0.9%) | |||||
Information Technology (0.9%) | |||||
454,738 | Taiwan Semiconductor Manufacturing Co. Ltd. | 761,882 | |||
121,668 | Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 1,054,862 | |||
1,816,744 | |||||
United Kingdom (18.8%) | |||||
Consumer Discretionary (4.0%) | |||||
327,223 | British Sky Broadcasting Group PLC | 3,425,698 | |||
29,923 | Carnival PLC | 1,193,254 | |||
267,932 | Kingfisher PLC | 1,223,582 | |||
187,000 | Reuters Group PLC | 1,372,663 | |||
550,105 | Signet Group PLC | 1,032,622 | |||
8,247,819 | |||||
Consumer Staples (1.3%) | |||||
31,491 | Reckitt Benckiser PLC | 1,263,428 | |||
237,995 | Tesco PLC | 1,598,072 | |||
2,861,500 | |||||
Energy (1.3%) | |||||
38,526 | BP PLC, ADR | 2,793,906 | |||
Financials (6.3%) | |||||
153,356 | Barclays PLC | 1,798,830 | |||
207,195 | Cattles PLC | 1,290,639 | |||
169,431 | HBOS PLC | 3,083,930 | |||
86,400 | HSBC Holdings PLC | 1,557,889 | |||
32,600 | Man Group PLC | 1,494,245 | |||
363,637 | Old Mutual PLC | 1,100,304 | |||
167,796 | Prudential Corp. PLC | 1,762,925 | |||
33,954 | Royal Bank of Scotland Group PLC (The) | 1,104,762 | |||
13,193,524 | |||||
Health Care (2.7%) | |||||
23,100 | AstraZeneca PLC | 1,410,447 | |||
47,553 | GlaxoSmithKline PLC | 1,315,415 | |||
339,802 | Smith & Nephew PLC | 2,925,880 | |||
5,651,742 | |||||
See notes to financial statements.
47
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security Description | Value | |||
Common Stocks, continued | |||||
United Kingdom, continued | |||||
Industrials (0.6%) | |||||
478,045 | Hays PLC | $ | 1,194,242 | ||
Information Technology (0.8%) | |||||
770,216 | ARM Holdings PLC | 1,672,381 | |||
Materials (1.2%) | |||||
138,782 | BHP Billiton PLC | 2,628,457 | |||
Telecommunications (0.6%) | |||||
63,364 | Vodafone Group PLC, ADR | 1,373,732 | |||
39,617,303 | |||||
Total Common Stocks (Cost $188,962,615) | 209,721,218 | ||||
Shares | Security Description | Value | |||
Investment Company (0.7%) | |||||
1,422,847 | Victory Institutional Money Market Fund, Investor Shares | $ | 1,422,847 | ||
Total Investment Company (Cost $1,422,847) | 1,422,847 | ||||
Total Investments (Cost $190,385,462) (a)—99.6% | 211,144,065 | ||||
Other assets in excess of liabilities—0.4% | 922,925 | ||||
Net Assets—100.0% | $ | 212,066,990 | |||
(a) | Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of losses recognized for financial reporting purposes in excess of federal income tax reporting of approximately $789,253. Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: |
Unrealized appreciation | $ | 25,727,410 | ||
Unrealized depreciation | (5,758,060 | ) | ||
Net unrealized appreciation | $ | 19,969,350 | ||
(b) | Non-income producing security. |
(c) | Restricted security. |
AB—Aktiebolag (Swedish Co.)
ADR—American Depositary Receipt
AG—Aktiengesellschaft (West German Stock Co.)
ASA—Allmennaksjeselskap (Norwegian Inc.)
GDR—Global Depositary Receipt
NV—Naamloze Vennootschaap (Dutch Corp.)
PLC—Public Limited Company
SA—Societe Anonyme (French Corp.)
SpA—Societa per Azioni (Italian Corp.)
At July 31, 2006 the Fund’s foreign currency exchange contracts were as follows:
Currency | Delivery Date | Contract Amount in Local Currency | Contract Value in USD | Value | Unrealized Depreciation | |||||||||
Short: | ||||||||||||||
Danish Krone | 8/1/06 | 124,475 | $ | 21,148 | $ | 20,981 | $ | (167 | ) | |||||
European Euro | 8/1/06 | 148,150 | 187,972 | 186,727 | (1,245 | ) | ||||||||
Great Britian Pound | 8/1/06 | 88,190 | 164,043 | 163,364 | (679 | ) | ||||||||
Swedish Krona | 8/1/06 | 129,405 | 17,800 | 17,638 | (162 | ) | ||||||||
Swiss Franc | 8/2/06 | 148,342 | 119,708 | 118,832 | (876 | ) | ||||||||
Total Short Contracts | $ | 510,671 | $ | 507,542 | $ | (3,129 | ) | |||||||
See notes to financial statements.
48
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments
July 31, 2006
Shares | Security | Value | |||
Common Stocks (95.3%) | |||||
Consumer Discretionary (15.0%) | |||||
2,530 | Adesa, Inc. | $ | 51,637 | ||
2,800 | ADVO, Inc. | 101,388 | |||
11,100 | American Woodmark Corp. | 377,178 | |||
212,300 | Applebee’s International, Inc. | 3,770,448 | |||
4,300 | Bon-Ton Stores, Inc. (The) | 106,081 | |||
105,000 | CBRL Group, Inc. | 3,430,350 | |||
5,080 | Central Eurpoean Media Enterprises Ltd. (b) | 309,067 | |||
79,900 | Charlotte Russe Holding, Inc. (b) | 2,091,782 | |||
127,400 | Charming Shoppes, Inc. (b) | 1,313,494 | |||
12,200 | Christopher & Banks Corp. | 343,918 | |||
3,090 | Conn’s, Inc. (b) | 79,475 | |||
7,070 | Cumulus Media, Inc. (b) | 67,165 | |||
99,800 | Deckers Outdoor Corp. (b) | 4,255,472 | |||
4,310 | Dick’s Sporting Goods, Inc. (b) | 156,927 | |||
156,900 | Domino’s Pizza, Inc. | 3,567,906 | |||
5,530 | Dover Downs Gaming & Entertainment, Inc. | 88,757 | |||
141,220 | DSW, Inc., Class A (b) | 4,848,083 | |||
29,500 | Entercom Communications Corp. | 747,825 | |||
9,010 | Furniture Brands International, Inc. | 180,741 | |||
656,220 | Gemstar-TV Guide International, Inc. (b) | 1,889,914 | |||
12,540 | Genesco, Inc. (b) | 339,458 | |||
21,740 | Gevity HR, Inc. | 482,845 | |||
13,910 | Global Imaging Systems Inc. (b) | 588,115 | |||
81,200 | Group 1 Automotive, Inc. | 4,979,183 | |||
42,100 | IHOP Corp. | 1,913,866 | |||
272,600 | IKON Office Solutions, Inc. | 3,764,606 | |||
124,400 | Interstate Hotels & Resorts, Inc. (b) | 1,236,536 | |||
800 | J. Crew Group, Inc. (b) | 21,328 | |||
10,560 | Jack in the Box, Inc. (b) | 416,486 | |||
24,940 | Journal Register Co. | 191,040 | |||
34,900 | Lee Enterprises, Inc. | 866,567 | |||
211,600 | Lions Gate Entertainment Corp. (b) | 1,965,764 | |||
4,860 | Live Nation, Inc. (b) | 101,866 | |||
73,100 | Lone Star Steakhouse & Saloon, Inc. | 1,709,809 | |||
24,160 | Mediacom Communications Corp. (b) | 152,208 | |||
3,420 | Men’s Wearhouse, Inc. (The) | 106,396 | |||
155,800 | Metal Management, Inc. | 4,437,184 | |||
19,800 | Mothers Work, Inc. (b) | 691,416 | |||
89,240 | Multimedia Games, Inc. (b) | 873,660 | |||
3,050 | Pantry, Inc. (The) (b) | 150,335 | |||
28,900 | Perry Ellis International, Inc. (b) | 747,354 | |||
4,100 | Phillips-Van Heusen Corp. | 145,673 | |||
5,810 | Polaris Industries, Inc. | 222,058 | |||
161,500 | Prestige Brands Holdings, Inc. (b) | 1,417,970 | |||
6,940 | PW Eagle Inc. | 201,607 | |||
118,300 | Radio One, Inc., Class D (b) | 849,394 | |||
126,400 | Russell Corp. | 2,276,464 | |||
4,910 | Schweitzer-Mauduit International, Inc. | 99,329 |
Shares | Security | Value | |||
Common Stocks, continued | |||||
Consumer Discretionary, continued | |||||
130,480 | Scottish Re Group Ltd. | $ | 520,615 | ||
23,080 | Select Comfort Corp. (b) | 465,062 | |||
27,130 | Skechers U.S.A., Inc. (b) | 591,705 | |||
6,800 | Stanley Furniture Co., Inc. | 153,952 | |||
28,720 | Steelcase, Inc., Class A | 421,897 | |||
8,850 | Stride Rite Corp. (The) | 112,041 | |||
2,370 | Thor Industries, Inc. | 101,531 | |||
11,900 | True Religion Apparel, Inc. (b) | 219,198 | |||
106,150 | Tuesday Morning Corp. | 1,534,929 | |||
107,800 | Warnaco Group, Inc. (The) (b) | 1,919,918 | |||
64,766,973 | |||||
Consumer Staples (0.4%) | |||||
42,200 | Ralcorp Holdings, Inc. (b) | 1,758,896 | |||
Energy (4.2%) | |||||
10,290 | Berry Petroleum Co. | 346,156 | |||
7,030 | Cabot Oil & Gas Corp. | 370,833 | |||
38,600 | Callon Petroleum Co. (b) | 719,890 | |||
156,900 | CMS Energy Corp. (b) | 2,198,169 | |||
67,700 | Core Laboratories N.V. (b) | 4,942,099 | |||
105,200 | Covanta Holding Corp. (b) | 1,856,780 | |||
16,400 | Delek US Holdings, Inc. (b) | 267,320 | |||
17,820 | Frontier Oil Corp. | 628,155 | |||
15,550 | FuelCell Energy, Inc. (b) | 137,307 | |||
3,660 | Giant Industries, Inc. (b) | 261,361 | |||
17,000 | Grey Wolf, Inc. (b) | 130,220 | |||
45,400 | Holly Corp. | 2,297,239 | |||
56,900 | Natco Group Inc., Class A (b) | 2,162,200 | |||
132,900 | Parker Drilling Co. (b) | 964,854 | |||
6,900 | RPC, Inc. | 158,700 | |||
8,720 | Trico Marine Services, Inc. (b) | 319,588 | |||
9,420 | W&T Offshore, Inc. | 320,845 | |||
18,081,716 | |||||
Financials (15.1%) | |||||
7,950 | Advanta Corp., Class B | 286,439 | |||
57,400 | AMCORE Financial, Inc. | 1,644,510 | |||
103,800 | Ashford Hospitality Trust, Inc. | 1,219,650 | |||
56,540 | Associated Banc-Corp | 1,773,094 | |||
16,800 | Boston Private Financial Holdings, Inc. | 422,184 | |||
112,350 | Brookline Bancorp, Inc. | 1,458,303 | |||
4,810 | Cash America International, Inc. | 164,743 | |||
267,400 | Castlepoint Holdings Ltd. (b)(c) | 2,941,400 | |||
65,300 | Community Bank System, Inc. | 1,381,748 | |||
10,090 | CompuCredit Corp. (b) | 329,640 | |||
154,000 | Corus Bankshares, Inc. | 3,555,860 | |||
10,230 | Encore Capital Group, Inc. (b) | 125,522 | |||
70,800 | Equity One, Inc. | 1,548,396 | |||
35,500 | Fidelity Bankshares, Inc. | 1,366,750 | |||
134,700 | Fieldstone Investment Corp. | 1,219,035 | |||
70,300 | Financial Federal Corp. | 1,888,961 | |||
24,510 | First Community Bancorp. | 1,345,109 | |||
142,000 | First Niagara Financial Group, Inc. | 2,077,460 | |||
29,800 | FirstFed Financial Corp. (b) | 1,682,210 | |||
2,820 | FPIC Insurance Group, Inc. (b) | 108,993 | |||
116,300 | Greater Bay Bancorp | 3,330,832 |
See notes to financial statements.
49
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security | Value | |||
Common Stocks, continued | |||||
Financials, continued | |||||
40,400 | Hancock Holding Co. | $ | 2,084,640 | ||
13,160 | IndyMac Bancorp, Inc. | 556,010 | |||
29,200 | Integra Bank Corp. | 709,852 | |||
94,200 | Investment Technology Group, Inc. (b) | 4,743,912 | |||
117,700 | Knight Capital Group, Inc. (b) | 1,946,758 | |||
110,800 | Lazard Ltd., Class A | 4,326,740 | |||
74,512 | Macatawa Bank Corp. | 1,736,875 | |||
19,900 | MAF Bancorp, Inc. | 815,900 | |||
42,018 | Marshall & Ilsley Corp. | 1,973,585 | |||
40,530 | Mercantile Bank | 1,661,730 | |||
19,900 | MoneyGram International, Inc. | 609,935 | |||
41,400 | Nara Bancorp, Inc. | 762,174 | |||
51,210 | Navigators Group, Inc. (The) (b) | 2,176,937 | |||
12,760 | Net 1 UEPS Technologies, Inc. (b) | 286,717 | |||
50,400 | Oak Hill Financial, Inc. | 1,302,840 | |||
33,200 | Old National Bancorp | 633,456 | |||
9,790 | optionsXpress Holdings, Inc. | 256,302 | |||
20,800 | PHH Corp. (b) | 520,208 | |||
133,000 | Quanta Capital Holdings Ltd. (b) | 293,930 | |||
8,790 | Seabright Insurance Holdings, Inc. (b) | 114,270 | |||
1,800 | Taylor Capital Group Inc. | 56,826 | |||
83,800 | TNS, Inc. (b) | 1,726,280 | |||
92,200 | Tower Group, Inc. | 2,767,844 | |||
75,000 | United PanAm Financial Corp. (b) | 1,431,750 | |||
22,690 | Waddell & Reed Financial, Inc. | 493,961 | |||
26,600 | Whitney Holding Corp. | 959,994 | |||
8,370 | Wright Express Corp. (b) | 250,682 | |||
65,070,947 | |||||
Health Care (4.9%) | |||||
3,950 | Air Methods Corp. (b) | 76,038 | |||
29,340 | Alkermes, Inc. (b) | 503,474 | |||
12,740 | Anadys Pharmaceuticals, Inc. (b) | 42,297 | |||
11,270 | Applera Corp.—Celera Genomics Group (b) | 152,145 | |||
1,570 | Arrow International, Inc. | 49,816 | |||
4,400 | ArthroCare Corp. (b) | 193,776 | |||
2,720 | Biosite Diagnostic (b) | 106,026 | |||
1,100 | Bruker BioSciences Corp. (b) | 6,424 | |||
10,980 | Candela Corp. (b) | 171,288 | |||
36,250 | Connetics Corp. (b) | 347,275 | |||
31,450 | CV Therapeutics, Inc. (b) | 385,263 | |||
14,640 | Cytokinetics, Inc. (b) | 85,205 | |||
23,900 | Encysive Pharmaceuticals, Inc. (b) | 93,449 | |||
43,100 | Haemonetics Corp. (b) | 1,890,797 | |||
4,100 | HealthSpring, Inc. (b) | 76,301 | |||
129,509 | HealthTronics, Inc. (b) | 850,874 | |||
1,380 | Hologic, Inc. (b) | 61,976 | |||
11,270 | Human Genome Sciences, Inc. (b) | 109,432 | |||
19,380 | ICOS Corp. (b) | 442,639 | |||
2,600 | ICU Medical, Inc. (b) | 108,628 | |||
8,100 | Immucor, Inc. (b) | 161,271 |
Shares | Security | Value | |||
Common Stocks, continued | |||||
Health Care, continued | |||||
20,000 | Incyte Corp. (b) | $ | 85,200 | ||
8,210 | Isis Pharmaceuticals, Inc. (b) | 49,342 | |||
6,180 | K-V Pharmaceutical Co. (b) | 117,111 | |||
14,400 | Kendle International, Inc. (b) | 418,608 | |||
9,040 | Magellan Health Services, Inc. (b) | 434,553 | |||
16,350 | Mannatech, Inc. | 237,075 | |||
100,500 | Matria Healthcare, Inc. (b) | 2,479,334 | |||
9,650 | Medarex, Inc. (b) | 90,228 | |||
6,380 | Medical Action Industries, Inc. (b) | 141,445 | |||
54,200 | MGI PHARMA, Inc. (b) | 791,862 | |||
6,360 | Molina Healthcare, Inc. (b) | 210,770 | |||
74,500 | NBTY, Inc. (b) | 2,199,985 | |||
19,180 | Neurogen Corp. (b) | 101,270 | |||
136,100 | Novavax, Inc. (b) | 526,707 | |||
48,050 | NPS Pharmaceuticals, Inc. (b) | 187,395 | |||
17,090 | Nu Skin Enterprises, Inc., Class A | 244,387 | |||
7,550 | Onyx Pharmaceuticals, Inc. (b) | 118,611 | |||
58,200 | Orthofix International N.V. (b) | 2,293,079 | |||
3,200 | OSI Pharmaceuticals, Inc. (b) | 106,848 | |||
40,990 | Palatin Technologies, Inc. (b) | 81,160 | |||
5,250 | Palomar Medical Technologies, Inc. (b) | 199,973 | |||
14,820 | PSS World Medical, Inc. (b) | 294,177 | |||
8,890 | Quidel Corp. (b) | 84,811 | |||
31,990 | Regeneron Pharmaceuticals, Inc. (b) | 436,983 | |||
6,000 | Renovis, Inc. (b) | 75,900 | |||
30,350 | Rigel Pharmaceuticals, Inc. (b) | 309,570 | |||
6,570 | Sciele Pharma, Inc. (b) | 134,291 | |||
3,310 | Sirona Dental Systems, Inc. | 110,521 | |||
13,470 | Sonus Pharmaceuticals, Inc. (b) | 66,003 | |||
24,190 | Threshold Pharmaceuticals, Inc. (b) | 39,188 | |||
13,020 | Universal Health Services, Inc., Class B | 729,120 | |||
2,120 | West Pharmaceutical Services, Inc. | 82,256 | |||
6,440 | ZOLL Medical Corp. (b) | 226,430 | |||
85,990 | ZymoGenetics, Inc. (b) | 1,622,631 | |||
21,241,218 | |||||
Industrials (16.5%) | |||||
4,730 | A.O. Smith Corp. | 202,728 | |||
104,500 | AAR Corp. (b) | 2,474,560 | |||
20,360 | Acuity Brands, Inc. | 890,343 | |||
8,050 | Advanced Energy Industries, Inc. (b) | 104,167 | |||
206,300 | AGCO Corp. (b) | 4,736,647 | |||
4,500 | Applied Industrial Technologies, Inc. | 104,940 | |||
8,390 | Asyst Technologies, Inc. (b) | 58,478 | |||
6,020 | BE Aerospace, Inc. (b) | 148,995 | |||
70,100 | Blount International, Inc. (b) | 764,090 | |||
13,400 | Bucyrus International, Inc., Class A | 652,714 | |||
294,800 | CAE, Inc. | 2,267,012 | |||
153,300 | Champion Enterprises, Inc. (b) | 1,016,379 |
See notes to financial statements.
50
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security | Value | |||
Common Stocks, continued | |||||
Industrials, continued | |||||
149,900 | Columbus McKinnon Corp. (b) | $ | 2,822,617 | ||
51,200 | Corrections Corp. of America (b) | 2,795,520 | |||
21,600 | CRA International, Inc. (b) | 976,536 | |||
21,600 | Crane Co. | 829,440 | |||
4,820 | Diodes, Inc. (b) | 172,990 | |||
83,200 | Dycom Industries, Inc. (b) | 1,496,768 | |||
93,500 | EMCOR Group, Inc. (b) | 4,817,119 | |||
134,200 | EnPro Industries, Inc. (b) | 4,197,776 | |||
43,800 | ESCO Technologies, Inc. (b) | 2,307,822 | |||
4,550 | FreightCar America, Inc. | 244,153 | |||
72,000 | Gardner Denver, Inc. (b) | 2,494,800 | |||
72,600 | General Cable Corp. (b) | 2,591,820 | |||
77,900 | Griffon Corp. (b) | 1,762,098 | |||
29,800 | IAMGOLD Corp. | 278,332 | |||
2,700 | Intevac, Inc. (b) | 56,889 | |||
113,000 | IXYS Corp. (b) | 1,062,200 | |||
15,380 | JLG Industries, Inc. | 278,378 | |||
125,000 | Kaydon Corp. | 4,531,250 | |||
70,100 | KEMET Corp. (b) | 586,737 | |||
37,600 | Kennametal, Inc. | 2,002,200 | |||
89,600 | Korn/Ferry International (b) | 1,663,872 | |||
4,500 | Lamson & Sessions Co. (The) (b) | 126,135 | |||
4,230 | Lennox International, Inc. | 96,486 | |||
13,330 | Micrel, Inc. (b) | 142,364 | |||
194,700 | Nalco Holding Co. (b) | 3,280,695 | |||
2,910 | NewMarket Corp. | 144,860 | |||
7,010 | Nordson Corp. | 318,955 | |||
11,700 | NovAtel, Inc. (b) | 502,047 | |||
14,930 | OmniVision Technologies, Inc. (b) | 283,670 | |||
190,600 | Orbital Sciences Corp. (b) | 3,413,646 | |||
37,000 | Planar Systems, Inc. (b) | 390,720 | |||
8,500 | Plexus Corp. (b) | 211,820 | |||
14,700 | QLogic Corp. (b) | 257,103 | |||
3,780 | Semtech Corp. (b) | 48,762 | |||
16,260 | Silicon Image, Inc. (b) | 172,031 | |||
292,200 | Stewart Enterprises, Inc., Class A | 1,563,270 | |||
57,800 | Superior Energy Services, Inc. (b) | 1,979,650 | |||
8,060 | Tennant Co. | 191,586 | |||
73,050 | Transmeta Corp. (b) | 98,618 | |||
4,450 | United Industrial Corp. | 200,206 | |||
51,300 | URS Corp. (b) | 2,031,480 | |||
10,400 | Varian, Inc. (b) | 467,792 | |||
39,337 | Varian Semiconductor Equipment Associates, Inc. (b) | 1,246,983 | |||
88,900 | Wabtec Corp. | 2,361,184 | |||
70,920,433 | |||||
Information Technology (15.2%) | |||||
251,300 | 3Com Corp. (b) | 1,191,162 | |||
19,950 | Actuate Corp. (b) | 80,798 | |||
100,230 | Acxiom Corp. | 2,453,630 | |||
96,900 | Aeroflex, Inc. (b) | 982,566 | |||
57,900 | American Reprographics Co. (b) | 1,851,642 | |||
4,610 | Ansoft Corp. (b) | 95,796 | |||
9,950 | ANSYS, Inc. (b) | 456,606 | |||
40,880 | Atmel Corp. (b) | 195,815 | |||
90,940 | Benchmark Electronics, Inc. (b) | 2,212,570 |
Shares | Security | Value | |||
Common Stocks, continued | |||||
Information Technology, continued | |||||
89,900 | Blackbaud, Inc. | $ | 1,875,314 | ||
901,590 | Brocade Communications Systems, Inc. (b) | 5,643,953 | |||
6,750 | CalAmp Corp. (b) | 42,458 | |||
196,300 | ChipMOS TECHNOLOGIES (Bermuda) Ltd. (b) | 1,162,096 | |||
13,940 | Click Commerce, Inc. (b) | 207,845 | |||
68,900 | Comtech Telecommunications Corp. (b) | 1,912,664 | |||
53,500 | CryptoLogic, Inc. | 1,120,825 | |||
4,400 | Cymer, Inc. (b) | 172,128 | |||
3,980 | Digital River, Inc. (b) | 178,463 | |||
12,650 | EarthLink, Inc. (b) | 91,207 | |||
190,100 | EFJ, Inc. (b) | 1,241,353 | |||
77,900 | Electro Scientific Industries, Inc. (b) | 1,369,482 | |||
65,100 | Emulex Corp. (b) | 969,339 | |||
1,600 | Equinix, Inc. (b) | 83,808 | |||
5,080 | FactSet Research Systems, Inc. | 223,012 | |||
17,800 | Fair Isaac Corp. | 601,284 | |||
83,900 | Foundry Networks, Inc. (b) | 869,204 | |||
100,200 | GigaMedia Ltd. (b) | 877,752 | |||
5,210 | Imergent, Inc. (b) | 66,167 | |||
34,630 | Indus International, Inc. (b) | 81,727 | |||
53,200 | Intergraph Corp. (b) | 1,890,196 | |||
130,000 | Interwoven, Inc. (b) | 1,232,400 | |||
12,010 | ITT Educational Services, Inc. (b) | 809,714 | |||
8,380 | j2 Global Communications, Inc. (b) | 234,640 | |||
28,390 | Jack Henry & Associates, Inc. | 535,719 | |||
7,790 | Komag, Inc. (b) | 298,435 | |||
132,500 | Lightbridge, Inc. (b) | 1,530,375 | |||
64,700 | ManTech International Corp. (b) | 1,823,893 | |||
137,400 | Mattson Technology, Inc. (b) | 1,118,436 | |||
175,200 | Mentor Graphics Corp. (b) | 2,414,256 | |||
158,600 | Methode Electronics, Inc. | 1,268,800 | |||
2,620 | MicroStrategy, Inc., Class A (b) | 216,019 | |||
2,750 | MTS Systems Corp. | 101,365 | |||
9,020 | Multi-Fineline Electronix, Inc. (b) | 224,237 | |||
6,690 | Open Solutions, Inc. (b) | 184,979 | |||
29,000 | Orbotech Ltd. (b) | 625,240 | |||
11,770 | Packeteer, Inc. (b) | 107,696 | |||
243,900 | Power-One, Inc. (b) | 1,541,448 | |||
57,900 | RADVision Ltd. (b) | 845,340 | |||
4,930 | Radyne Corp. (b) | 55,117 | |||
11,110 | RealNetworks, Inc. (b) | 110,989 | |||
94,400 | Reynolds & Reynolds Co. (The), Class A | 3,340,816 | |||
32,400 | ROFIN-SINAR Technologies, Inc. (b) | 1,744,092 | |||
44,900 | Rogers Corp. (b) | 2,559,300 | |||
68,800 | Secure Computing Corp. (b) | 382,528 | |||
404,000 | SonicWALL, Inc. (b) | 4,040,000 | |||
5,760 | SPSS, Inc. (b) | 155,693 | |||
155,700 | Staktek Holdings, Inc. (b) | 959,112 | |||
7,370 | Sykes Enterprises, Inc. (b) | 120,278 | |||
28,900 | TALX Corp. | 593,895 |
See notes to financial statements.
51
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security | Value | |||
Common Stocks, continued | |||||
Information Technology, continued | |||||
87,800 | TETRA Technologies, Inc. (b) | $ | 1,407,434 | ||
26,850 | Trident Microsystems, Inc. (b) | 462,357 | |||
13,110 | TTM Technologies, Inc. (b) | 144,734 | |||
220,300 | webMethods, Inc. (b) | 1,639,032 | |||
10,000 | Websense, Inc. (b) | 187,500 | |||
149,100 | Zoran Corp. (b) | 2,393,055 | |||
65,609,786 | |||||
Materials (11.8%) | |||||
3,810 | Albemarle Corp. | 192,100 | |||
29,620 | Amkor Technology, Inc. (b) | 183,052 | |||
5,400 | Ampco-Pittsburgh Corp. | 170,208 | |||
27,300 | Baldor Electric Co. | 808,080 | |||
143,200 | Belden CDT, Inc. | 4,646,840 | |||
4,070 | Bowater, Inc. | 82,540 | |||
2,250 | Carpenter Technology Corp. | 221,400 | |||
177,600 | Century Aluminum Co. (b) | 5,482,511 | |||
2,050 | Chaparral Steel Co. (b) | 143,890 | |||
18,000 | CLARCOR, Inc. | 511,740 | |||
11,300 | Cleveland-Cliffs, Inc. | 408,495 | |||
212,400 | Commercial Metals Co. | 4,819,356 | |||
64,100 | ElkCorp | 1,598,654 | |||
16,600 | Greif, Inc., Class A | 1,148,886 | |||
97,400 | H.B. Fuller Co. | 3,894,052 | |||
166,300 | Hercules, Inc. (b) | 2,311,570 | |||
12,500 | Insteel Industries, Inc. | 258,750 | |||
3,430 | Mueller Industries, Inc. | 126,018 | |||
2,170 | Olympic Steel, Inc. | 76,319 | |||
135,300 | OM Group, Inc. (b) | 4,751,736 | |||
77,300 | Packaging Corp. of America | 1,772,489 | |||
4,890 | Pioneer Cos., Inc. (b) | 128,411 | |||
41,200 | Quanex Corp. | 1,495,148 | |||
72,290 | Regal-Beloit Corp. | 2,873,528 | |||
14,400 | Reliance Steel & Aluminum Co. | 516,240 | |||
41,400 | RTI International Metals, Inc. (b) | 1,907,712 | |||
46,400 | Spartech Corp. | 1,070,912 | |||
88,300 | Steel Dynamics, Inc. | 5,123,166 | |||
36,310 | Steel Technologies, Inc. | 842,755 | |||
41,400 | Stillwater Mining Co. (b) | 482,724 | |||
7,100 | Sun Hydraulics Corp. | 128,368 | |||
93,800 | Westlake Chemical Corp. | 2,570,120 | |||
50,747,770 | |||||
Real Estate Investment Trust (3.8%) | |||||
3,150 | Capital Trust, Inc., Class A | 108,297 | |||
43,600 | Cousins Properties, Inc. | 1,385,172 | |||
4,440 | DiamondRock Hospitality Co. | 71,351 | |||
142,400 | DiamondRock Hospitality Co. (c) | 2,288,368 | |||
53,000 | Healthcare Realty Trust, Inc. | 1,753,770 | |||
22,800 | Highland Hospitality Corp. | 304,380 | |||
26,120 | Impac Mortgage Holdings, Inc. | 281,312 | |||
59,900 | JER Investors Trust, Inc. | 928,450 | |||
76,700 | JER Investors Trust, Inc. (c) | 1,188,850 | |||
104,400 | KKR Financial Corp. | 2,417,905 | |||
80,200 | Newcastle Investment Corp. | 2,060,338 | |||
4,480 | Strategic Hotels & Resorts, Inc. | 89,376 | |||
6,250 | Sunstone Hotel Investors, Inc. | 177,250 | |||
53,421 | Ventas, Inc. | 1,908,732 |
Shares | Security | Value | |||
Common Stocks, continued | |||||
Real Estate Investment Trust, continued | |||||
39,200 | Washington Real Estate Investment Trust | $ | 1,453,536 | ||
16,417,087 | |||||
Telecommunications (1.0%) | |||||
44,300 | ADTRAN, Inc. | 968,841 | |||
10,430 | Atlantic Tele-Network, Inc. | 193,789 | |||
66,700 | Carrier Access Corp. (b) | 513,590 | |||
50,450 | CSG Systems International, Inc. (b) | 1,313,718 | |||
7,060 | Dobson Communications Corp., Class A (b) | 47,373 | |||
2,510 | eFunds Corp. (b) | 52,785 | |||
55,800 | iBasis, Inc. (b) | 468,162 | |||
4,460 | InterDigital Communications Corp. (b) | 122,249 | |||
6,500 | NeuStar, Inc. (b) | 200,590 | |||
10,330 | Premiere Global Services, Inc. (b) | 75,719 | |||
9,160 | Sirenza Microdevices, Inc. (b) | 86,928 | |||
4,200 | Syniverse Holdings, Inc. (b) | 58,716 | |||
4,102,460 | |||||
Transportation (5.2%) | |||||
365,600 | ABX Air, Inc. (b) | 1,970,584 | |||
3,574 | Arkansas Best Corp. | 158,793 | |||
30,440 | Continental Airlines, Inc., Class B (b) | 801,790 | |||
112,340 | EGL, Inc. (b) | 4,932,850 | |||
95,900 | General Maritime Corp. | 3,481,170 | |||
19,470 | Knight Transportation, Inc. | 334,105 | |||
3,000 | McGrath RentCorp | 81,060 | |||
17,280 | Old Dominion Freight Line, Inc. (b) | 562,982 | |||
28,900 | OMI Corp. | 637,534 | |||
57,700 | Overseas Shipholding Group, Inc. | 3,715,303 | |||
24,900 | Quintana Maritime Ltd. (b)(c) | 2,334,375 | |||
29,800 | Ship Finance International Ltd. | 579,312 | |||
27,170 | United Rentals, Inc. (b) | 758,586 | |||
50,100 | Universal Truckload Services, Inc. (b) | 1,756,005 | |||
12,980 | Werner Enterprises, Inc. | 233,640 | |||
22,338,089 | |||||
Utilities (2.2%) | |||||
100,400 | El Paso Electric Co. (b) | 2,200,768 | |||
69,000 | Energen Corp. | 2,940,780 | |||
25,100 | Forest Oil Corp. (b) | 841,101 | |||
95,800 | UGI Corp. | 2,380,630 | |||
43,300 | Watts Water Industries, Inc., Class A | 1,261,329 | |||
9,624,608 | |||||
Total Common Stocks (Cost $393,734,704) | 410,679,983 | ||||
Depositary Receipts (2.0%) | |||||
120,600 | iShares Russell 2000 Value Index Fund | 8,627,724 | |||
Total Depositary Receipts (Cost $7,089,315) | 8,627,724 | ||||
See notes to financial statements.
52
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security | Value | ||||
Cash Sweep (3.6%) | ||||||
15,495,079 | Bank of New York Cash Reserve Fund | $ | 15,495,079 | |||
Total Cash Sweep (Cost $15,495,079) | 15,495,079 | |||||
Total Investments (Cost $416,319,098) (a)—100.9% | 434,802,786 | |||||
Liabilities in excess of other assets—(0.9)% | (3,830,194 | ) | ||||
Net Assets—100.0% | $ | 430,972,592 | ||||
(a) | Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of losses recognized for financial reporting purposes in excess of federal income tax reporting of approximately $586,541. Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: |
Unrealized appreciation | $ | 49,787,395 | ||
Unrealized depreciation | (31,890,248 | ) | ||
Net unrealized appreciation | $ | 17,897,147 | ||
(b) | Non-income producing security. |
(c) | Restricted security. |
See notes to financial statements.
53
PACIFIC CAPITAL FUNDS
Mid-Cap Fund
Schedule of Portfolio Investments
July 31, 2006
Shares | Security | Value | |||
Common Stocks (98.4%) | |||||
Consumer Discretionary (16.6%) | |||||
7,000 | Abercrombie & Fitch Co., Class A | $ | 370,720 | ||
41,700 | American Eagle Outfitters, Inc. | 1,370,261 | |||
20,400 | Ann Taylor Stores Corp. (b) | 837,624 | |||
10,600 | Assurant, Inc. | 510,602 | |||
9,100 | Autoliv, Inc. | 511,147 | |||
7,400 | Banta Corp. | 261,442 | |||
16,200 | Brinker International, Inc. | 524,880 | |||
6,500 | Brunswick Corp. | 192,205 | |||
12,200 | Circuit City Stores, Inc. | 298,900 | |||
3,400 | Corporate Executive Board Co. (The) | 319,600 | |||
18,300 | Darden Restaurants, Inc. | 618,540 | |||
27,100 | Dillard’s, Inc., Class A | 813,813 | |||
17,700 | Furniture Brands International, Inc. | 355,062 | |||
8,900 | GTECH Holdings Corp. | 299,841 | |||
9,400 | Liz Claiborne, Inc. | 332,290 | |||
6,200 | Men’s Wearhouse, Inc. (The) | 192,882 | |||
15,900 | Netflix, Inc. (b) | 328,971 | |||
28,800 | Payless ShoeSource, Inc. (b) | 745,344 | |||
7,600 | R.R. Donnelley & Sons Co. | 221,844 | |||
18,900 | Rent-A-Center, Inc. (b) | 508,977 | |||
28,300 | Sabre Holdings Corp., Class A | 585,810 | |||
12,800 | Sherwin-Williams Co. (The) | 647,680 | |||
9,700 | Thor Industries, Inc. | 415,548 | |||
17,400 | Tupperware Brands Corp. | 300,324 | |||
580 | Washington Post Co. (The), Class B | 447,180 | |||
4,600 | Whirlpool Corp. | 355,074 | |||
12,366,561 | |||||
Consumer Staples (1.8%) | |||||
5,700 | Energizer Holdings, Inc. (b) | 362,691 | |||
8,000 | Hansen Natural Corp. (b) | 367,920 | |||
8,900 | Hormel Foods Corp. | 335,797 | |||
8,800 | McCormick & Co., Inc. | 308,528 | |||
1,374,936 | |||||
Energy (12.7%) | |||||
33,900 | Allegheny Energy, Inc. (b) | 1,391,595 | |||
21,800 | Cimarex Energy Co. | 890,094 | |||
19,900 | ENSCO International, Inc. | 919,778 | |||
18,900 | Helmerich & Payne, Inc. | 523,152 | |||
17,700 | Newfield Exploration Co. (b) | 820,926 | |||
44,100 | Patterson-UTI Energy, Inc. | 1,248,912 | |||
14,200 | Pepco Holdings, Inc. | 347,900 | |||
8,800 | Pogo Producing Co. | 389,576 | |||
17,800 | Questar Corp. | 1,577,080 | |||
10,400 | Tesoro Corp. | 777,920 | |||
9,600 | Unit Corp. (b) | 562,944 | |||
9,449,877 | |||||
Financials (14.5%) | |||||
12,500 | A.G. Edwards, Inc. | 674,500 | |||
21,400 | American Financial Group, Inc. | 901,154 | |||
5,900 | AmeriCredit Corp. (b) | 145,081 | |||
13,700 | AmerUs Group Co. | 919,133 | |||
14,700 | AmSouth Bancorp. | 421,302 | |||
13,500 | Compass Bancshares, Inc. | 795,690 | |||
3,800 | Cullen/Frost Bankers, Inc. | 223,136 | |||
11,100 | First American Corp. | 410,811 |
Shares | Security | Value | ||
Common Stocks, continued | ||||
Financials, continued | ||||
15,500 | Global Payments, Inc. | 659,370 | ||
17,700 | IndyMac Bancorp, Inc. | 747,825 | ||
11,200 | Jefferies Group, Inc. | 290,976 | ||
11,900 | Leucadia National Corp. | 327,607 | ||
11,950 | Mercantile Bankshares Corp. | 424,942 | ||
14,000 | MoneyGram International, Inc. | 429,100 | ||
6,800 | Nationwide Financial Services, Inc. | 306,544 | ||
13,300 | PMI Group, Inc. (The) | 564,718 | ||
12,300 | Radian Group, Inc. | 756,819 | ||
6,500 | Raymond James Financial, Inc. | 188,890 | ||
23,350 | W. R. Berkley Corp. | 840,600 | ||
5,100 | Wilmington Trust Corp. | 222,105 | ||
6,600 | Zions Bancorp. | 542,124 | ||
10,792,427 | ||||
Health Care (9.8%) | ||||
6,100 | Alpharma, Inc., Class A | 137,738 | ||
24,500 | Applied Biosystems Group | 787,675 | ||
12,100 | C. R. Bard, Inc. | 858,737 | ||
9,800 | Charles River Laboratories International, Inc. (b) | 347,900 | ||
7,725 | Coventry Health Care, Inc. (b) | 407,108 | ||
11,300 | Emdeon Corp. (b) | 135,939 | ||
21,400 | Health Net, Inc. (b) | 898,158 | ||
4,700 | Hillenbrand Industries, Inc. | 233,402 | ||
11,800 | Humana, Inc. (b) | 659,974 | ||
3,000 | ImClone Systems, Inc. (b) | 97,500 | ||
2,700 | Intuitive Surgical, Inc. (b) | 257,040 | ||
6,600 | Invitrogen Corp. (b) | 407,814 | ||
8,900 | King Pharmaceuticals, Inc. (b) | 151,478 | ||
20,800 | LifePoint Hospitals, Inc. (b) | 700,752 | ||
11,000 | Lincare Holdings, Inc. (b) | 382,910 | ||
17,600 | Techne Corp. (b) | 874,544 | ||
7,338,669 | ||||
Industrials (12.0%) | ||||
9,300 | Armor Holdings, Inc. (b) | 480,438 | ||
8,800 | Ashland, Inc. | 585,288 | ||
10,200 | Cummins, Inc. | 1,193,400 | ||
6,000 | Harsco Corp. | 483,660 | ||
6,600 | JLG Industries, Inc. | 119,460 | ||
22,800 | Joy Global, Inc. | 855,456 | ||
8,400 | Martin Marietta Materials, Inc. | 676,368 | ||
21,400 | OmniVision Technologies, Inc. (b) | 406,600 | ||
20,700 | Plexus Corp. (b) | 515,844 | ||
16,300 | Precision Castparts Corp. | 972,295 | ||
17,200 | Republic Services, Inc. | 690,752 | ||
19,700 | Terex Corp. (b) | 883,348 | ||
6,900 | Thermo Electron Corp. (b) | 255,369 | ||
8,000 | Thomas & Betts Corp. (b) | 378,640 | ||
7,500 | Trinity Industries, Inc. | 250,650 | ||
4,000 | Varian, Inc. (b) | 179,920 | ||
8,927,488 | ||||
Information Technology (11.5%) | ||||
1 | Activision, Inc. (b) | 12 | ||
11,500 | Akamai Technologies, Inc. (b) | 455,745 | ||
9,700 | Arrow Electronics, Inc. (b) | 274,122 |
See notes to financial statements.
54
PACIFIC CAPITAL FUNDS
Mid-Cap Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security | Value | |||
Common Stocks, continued | |||||
Information Technology, continued | |||||
21,400 | Avnet, Inc. (b) | $ | 389,480 | ||
20,900 | Cadence Design Systems, Inc. (b) | 338,371 | |||
12,800 | CheckFree Corp. (b) | 569,600 | |||
21,900 | Citrix Systems, Inc. (b) | 695,763 | |||
5,000 | Cognizant Technology Solutions Corp. (b) | 327,450 | |||
11,550 | FactSet Research Systems, Inc. | 507,045 | |||
6,000 | Imation Corp. | 244,320 | |||
21,700 | Integrated Device Technology, Inc. (b) | 335,699 | |||
28,800 | Intersil Corp., Class A | 677,088 | |||
7,900 | ITT Educational Services, Inc. (b) | 532,618 | |||
12,300 | Lam Research Corp. (b) | 511,557 | |||
14,700 | MEMC Electronic Materials, Inc. (b) | 447,174 | |||
14,100 | Microchip Technology, Inc. | 454,866 | |||
33,400 | Palm, Inc. (b) | 497,994 | |||
25,900 | Sybase, Inc. (b) | 545,195 | |||
10,600 | Vishay Intertechnology, Inc. (b) | 148,718 | |||
34,700 | Western Digital Corp. (b) | 608,638 | |||
8,561,455 | |||||
Materials (5.2%) | |||||
8,500 | Airgas, Inc. | 308,125 | |||
3,700 | Florida Rock Industries, Inc. | 140,822 | |||
14,100 | FMC Corp. | 869,829 | |||
20,700 | Louisiana-Pacific Corp. | 414,000 | |||
7,300 | Reliance Steel & Aluminum Co. | 261,705 | |||
12,700 | RPM International, Inc. | 237,998 | |||
17,200 | Steel Dynamics, Inc. | 997,944 | |||
10,700 | United States Steel Corp. | 674,849 | |||
3,905,272 | |||||
Real Estate Investment Trust (5.0%) | |||||
5,300 | Camden Property Trust | 405,185 | |||
22,200 | CB Richard Ellis Group, Inc., Class A (b) | 522,366 | |||
16,400 | CBL & Associates Properties, Inc. | 642,224 | |||
20,400 | Highwoods Properties, Inc. | 759,696 |
Shares | Security | Value | ||||
Common Stocks, continued | ||||||
Real Estate Investment Trust, continued | ||||||
6,000 | Hospitality Properties Trust | $ | 261,420 | |||
12,000 | New Plan Excel Realty Trust | 311,040 | ||||
7,500 | SL Green Realty Corp. | 857,250 | ||||
3,759,181 | ||||||
Telecommunications (1.4%) | ||||||
10,700 | Harris Corp. | 487,385 | ||||
7,300 | NII Holdings, Inc. (b) | 385,294 | ||||
19,300 | Tellabs, Inc. (b) | 181,420 | ||||
1,054,099 | ||||||
Transportation (3.7%) | ||||||
9,100 | Con-Way, Inc. | 450,268 | ||||
9,600 | Overseas Shipholding Group, Inc. | 618,144 | ||||
6,600 | Ryder System, Inc. | 332,640 | ||||
15,100 | SkyWest, Inc. | 366,175 | ||||
25,300 | YRC Worldwide Inc. (b) | 1,006,434 | ||||
2,773,661 | ||||||
Utilities (4.2%) | ||||||
17,100 | Alliant Energy Corp. | 618,678 | ||||
19,050 | MDU Resources Group, Inc. | 469,583 | ||||
9,600 | NICOR, Inc. | 420,672 | ||||
10,100 | NSTAR | 314,817 | ||||
7,600 | OGE Energy Corp. | 287,660 | ||||
13,600 | ONEOK, Inc. | 506,056 | ||||
12,300 | Wisconsin Energy Corp. | 519,060 | ||||
3,136,526 | ||||||
Total Common Stocks (Cost $68,459,998) | 73,440,152 | |||||
Investment Company (1.9%) | ||||||
1,432,006 | Victory Institutional Money Market Fund, Investor Shares | 1,432,006 | ||||
Total Investment Company (Cost $1,432,006) | 1,432,006 | |||||
Total Investments (Cost $69,892,004) (a)—100.3% | 74,872,158 | |||||
Liabilities in excess of other assets—(0.3)% | (244,397 | ) | ||||
Net Assets—100.0% | $ | 74,627,761 | ||||
(a) | Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of losses recognized for financial reporting purposes in excess of federal income tax reporting of approximately $59,727. Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: |
Unrealized appreciation | $ | 8,784,498 | ||
Unrealized depreciation | (3,864,071 | ) | ||
Net unrealized appreciation | $ | 4,920,427 | ||
(b) | Non-income producing security. |
See notes to financial statements.
55
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Schedule of Portfolio Investments
July 31, 2006
Shares | Security | Value | |||
Common Stocks (97.2%) | |||||
Consumer Discretionary (13.0%) | |||||
46,180 | bebe stores, inc. | $ | 714,866 | ||
42,690 | Best Buy Co., Inc. | 1,935,565 | |||
46,650 | Chico’s FAS, Inc. (b) | 1,056,623 | |||
61,770 | Coach, Inc. (b) | 1,773,417 | |||
33,040 | Colgate-Palmolive Co. | 1,959,933 | |||
11,000 | Corporate Executive Board Co. (The) | 1,034,000 | |||
27,160 | GameStop Corp., Class A (b) | 1,130,128 | |||
17,150 | J.C. Penney Co., Inc. (Holding Co.) | 1,079,764 | |||
37,660 | Lowe’s Cos., Inc. | 1,067,661 | |||
22,170 | McDonald’s Corp. | 784,596 | |||
28,530 | McGraw-Hill Cos., Inc. (The) | 1,606,239 | |||
18,160 | MSC Industrial Direct Co. Inc., Class A | 748,737 | |||
48,850 | Newell Rubbermaid, Inc. | 1,287,686 | |||
29,140 | Nordstrom, Inc. | 999,502 | |||
25,160 | Tiffany & Co. | 794,804 | |||
33,060 | Urban Outfitters, Inc. (b) | 482,345 | |||
11,490 | VF Corp. | 779,252 | |||
46,330 | Wal-Mart Stores, Inc. | 2,061,684 | |||
21,296,802 | |||||
Consumer Staples (9.1%) | |||||
50,570 | CVS Corp. | 1,654,650 | |||
39,320 | Hansen Natural Corp. (b) | 1,808,327 | |||
23,050 | Pepsi Bottling Group, Inc. (The) | 766,413 | |||
79,874 | PepsiCo, Inc. | 5,062,414 | |||
43,827 | Procter & Gamble Co. (The) | 2,463,077 | |||
41,520 | Target Corp. | 1,906,598 | |||
25,260 | Walgreen Co. | 1,181,663 | |||
14,843,142 | |||||
Energy (6.0%) | |||||
22,980 | Arch Coal, Inc. | 871,861 | |||
16,910 | ENSCO International, Inc. | 781,580 | |||
10,660 | Entergy Corp. | 821,886 | |||
26,110 | Nabors Industries Ltd. (b) | 922,205 | |||
20,730 | Questar Corp. | 1,836,678 | |||
17,900 | Quicksilver Resources, Inc. (b) | 632,944 | |||
24,020 | Schlumberger Ltd. | 1,605,737 | |||
21,860 | Southwestern Energy Co. (b) | 751,984 | |||
12,930 | TXU Corp. | 830,494 | |||
14,080 | Ultra Petroleum Corp. (b) | 824,525 | |||
9,879,894 | |||||
Financials (9.6%) | |||||
28,910 | American Express Co. | 1,505,055 | |||
5,490 | Bear Stearns Cos., Inc. (The) | 778,866 | |||
2,490 | Chicago Mercantile Exchange Holdings, Inc. | 1,148,388 | |||
36,640 | First Marblehead Corp. (The) | 1,678,112 | |||
17,660 | Global Payments, Inc. | 751,256 | |||
7,160 | Goldman Sachs Group, Inc. (The) | 1,093,690 | |||
41,740 | JPMorgan Chase & Co. | 1,904,179 | |||
33,170 | MetLife, Inc. | 1,724,840 | |||
31,220 | Northern Trust Corp. | 1,782,662 | |||
20,240 | State Street Corp. | 1,215,614 | |||
28,940 | Wells Fargo & Co. | 2,093,520 | |||
15,676,182 | |||||
Shares | Security | Value | |||
Common Stocks, continued | |||||
Health Care (20.6%) | |||||
30,580 | Abbott Laboratories | $ | 1,460,807 | ||
41,240 | Amgen, Inc. (b) | 2,876,078 | |||
31,670 | Beckman Coulter, Inc. | 1,813,108 | |||
20,520 | Becton, Dickinson and Co. | 1,352,678 | |||
30,630 | Biomet, Inc. | 1,008,952 | |||
48,450 | Caremark Rx, Inc. | 2,558,160 | |||
48,490 | Community Health Systems, Inc. (b) | 1,758,247 | |||
11,840 | Genentech, Inc. (b) | 956,909 | |||
18,670 | Genzyme Corp. (b) | 1,274,788 | |||
14,110 | Gilead Sciences, Inc. (b) | 867,483 | |||
23,390 | Health Net, Inc. (b) | 981,678 | |||
9,930 | IDEXX Laboratories, Inc. (b) | 878,805 | |||
65,090 | Johnson & Johnson | 4,071,380 | |||
31,590 | Medtronic, Inc. | 1,595,927 | |||
19,590 | Merck & Co., Inc. | 788,889 | |||
26,630 | Pharmaceutical Product Development, Inc. | 1,024,722 | |||
18,330 | Quest Diagnostics, Inc. | 1,102,000 | |||
34,740 | Sanofi-Aventis ADR | 1,646,329 | |||
112,360 | Schering-Plough Corp. | 2,296,638 | |||
20,080 | Sierra Health Services, Inc. (b) | 867,054 | |||
53,590 | Wyeth | 2,597,507 | |||
33,778,139 | |||||
Industrials (12.1%) | |||||
21,690 | Boeing Co. (The) | 1,679,240 | |||
16,920 | Caterpillar, Inc. | 1,199,120 | |||
11,460 | Fluor Corp. | 1,006,532 | |||
191,243 | General Electric Co. | 6,251,733 | |||
20,900 | Joy Global, Inc. | 784,168 | |||
34,350 | Precision Castparts Corp. | 2,048,978 | |||
45,050 | QLogic Corp. (b) | 787,925 | |||
21,080 | Robert Half International, Inc. | 682,149 | |||
21,930 | Textron, Inc. | 1,971,726 | |||
17,020 | Thomas & Betts Corp. (b) | 805,557 | |||
25,260 | United Technologies Corp. | 1,570,919 | |||
29,160 | Waste Management, Inc. | 1,002,521 | |||
19,790,568 | |||||
Information Technology (22.9%) | |||||
183,810 | 3Com Corp. (b) | 871,259 | |||
28,080 | Akamai Technologies, Inc. (b) | 1,112,810 | |||
14,430 | Apple Computer, Inc. (b) | 980,663 | |||
85,150 | Cisco Systems, Inc. (b) | 1,519,928 | |||
25,110 | Citrix Systems, Inc. (b) | 797,745 | |||
43,800 | Freescale Semiconductor, Inc. (b) | 1,249,176 | |||
7,170 | Google, Inc., Class A (b) | 2,771,922 | |||
42,190 | Hewlett-Packard Co. | 1,346,283 | |||
158,060 | Intel Corp. | 2,845,080 | |||
34,680 | International Business Machines Corp. | 2,684,579 | |||
32,920 | Intersil Corp., Class A | 773,949 | |||
15,430 | ITT Educational Services, Inc. (b) | 1,040,291 | |||
19,890 | Lockheed Martin Corp. | 1,584,835 | |||
29,780 | Marvell Technology Group, Ltd. (b) | 552,419 | |||
56,920 | Micron Technology, Inc. (b) | 887,383 | |||
234,360 | Microsoft Corp. | 5,631,671 |
See notes to financial statements.
56
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security | Value | |||
Common Stocks, continued | |||||
Information Technology, continued | |||||
128,870 | Motorola, Inc. | $ | 2,933,081 | ||
102,700 | Oracle Corp. (b) | 1,537,419 | |||
116,090 | PMC-Sierra, Inc. (b) | 593,220 | |||
64,020 | QUALCOMM, Inc. | 2,257,345 | |||
33,330 | Red Hat, Inc. (b) | 789,254 | |||
39,660 | Redback Networks, Inc. (b) | 613,144 | |||
26,910 | Texas Instruments, Inc. | 801,380 | |||
159,240 | TIBCO Software, Inc. (b) | 1,267,550 | |||
37,442,386 | |||||
Materials (2.0%) | |||||
22,900 | Century Aluminum Co. (b) | 706,923 | |||
170,410 | Coeur d’Alene Mines Corp. (b) | 814,560 | |||
10,030 | Phelps Dodge Corp. | 876,020 | |||
68,060 | Stillwater Mining Co. (b) | 793,580 | |||
3,191,083 | |||||
Telecommunications (1.5%) | |||||
13,540 | ALLTEL Corp. | 747,002 | |||
23,280 | America Movil SA de CV | 832,958 | |||
19,720 | Harris Corp. | 898,246 | |||
2,478,206 | |||||
Shares | Security | Value | ||||
Common Stocks, continued | ||||||
Transportation (0.4%) | ||||||
27,420 | SkyWest, Inc. | $ | 664,935 | |||
Total Common Stocks (Cost $161,572,753) | 159,041,337 | |||||
Depositary Receipts (1.7%) | ||||||
84,780 | Consumer Discretionary Select Sector SPDR Fund | 2,736,698 | ||||
Total Depositary Receipts (Cost $2,715,359) | 2,736,698 | |||||
Investment Company (2.5%) | ||||||
4,079,815 | Victory Institutional Money Market Fund, Investor Shares | 4,079,815 | ||||
Total Investment Company (Cost $4,079,815) | 4,079,815 | |||||
Total Investments (Cost $168,367,927) (a)—101.4% | 165,857,850 | |||||
Liabilities in excess of other assets—(1.4)% | (2,253,928 | ) | ||||
Net Assets—100.0% | $ | 163,603,922 | ||||
(a) | Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of losses recognized for financial reporting purposes in excess of federal income tax reporting of approximately $936,704. Cost for federal income tax purposes differs from value by net unrealized depreciation of securities as follows: |
Unrealized appreciation | $ | 6,170,457 | ||
Unrealized depreciation | (9,617,238 | ) | ||
Net unrealized appreciation | $ | (3,446,781 | ) | |
(b) | Non-income producing security. |
See notes to financial statements.
57
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Schedule of Portfolio Investments
July 31, 2006
Shares | Security | Value | |||
Common Stocks (98.4%) | |||||
Consumer Discretionary (12.7%) | |||||
45,600 | bebe stores, inc. | $ | 705,888 | ||
20,620 | Best Buy Co., Inc. | 934,911 | |||
43,210 | Chico’s FAS, Inc. (b) | 978,707 | |||
56,200 | Coach, Inc. (b) | 1,613,502 | |||
26,770 | Colgate-Palmolive Co. | 1,587,996 | |||
30,070 | Comcast Corp., Class A (b) | 1,033,807 | |||
9,720 | Corporate Executive Board Co. (The) | 913,680 | |||
27,430 | GameStop Corp., Class A (b) | 1,141,362 | |||
17,030 | J.C. Penney Co., Inc. (Holding Co.) | 1,072,209 | |||
48,990 | Kroger Co. (The) | 1,123,341 | |||
20,920 | Lowe’s Cos., Inc. | 593,082 | |||
41,230 | McDonald’s Corp. | 1,459,130 | |||
29,290 | McGraw-Hill Cos., Inc. (The) | 1,649,026 | |||
51,350 | Newell Rubbermaid, Inc. | 1,353,586 | |||
26,820 | Nordstrom, Inc. | 919,926 | |||
29,540 | Urban Outfitters, Inc. (b) | 430,989 | |||
12,730 | VF Corp. | 863,349 | |||
18,610 | Wal-Mart Stores, Inc. | 828,145 | |||
59,070 | Walt Disney Co. (The) | 1,753,787 | |||
20,956,423 | |||||
Consumer Staples (7.3%) | |||||
37,050 | CVS Corp. | 1,212,276 | |||
39,800 | Hansen Natural Corp. (b) | 1,830,402 | |||
23,230 | Pepsi Bottling Group, Inc. (The) | 772,398 | |||
60,425 | PepsiCo, Inc. | 3,829,736 | |||
48,231 | Procter & Gamble Co. (The) | 2,710,582 | |||
21,340 | Target Corp. | 979,933 | |||
14,950 | Walgreen Co. | 699,361 | |||
12,034,688 | |||||
Energy (11.6%) | |||||
12,000 | Apache Corp. | 845,640 | |||
22,980 | Arch Coal, Inc. | 871,861 | |||
27,080 | Chevrontexaco Corp. | 1,781,322 | |||
12,230 | ConocoPhillips | 839,467 | |||
16,900 | ENSCO International, Inc. | 781,118 | |||
88,640 | Exxon Mobil Corp. | 6,004,474 | |||
18,690 | Hess Corp. | 988,701 | |||
25,640 | Nabors Industries Ltd. (b) | 905,605 | |||
14,970 | Occidental Petroleum Corp. | 1,613,018 | |||
12,170 | Questar Corp. | 1,078,262 | |||
17,700 | Quicksilver Resources, Inc. (b) | 625,872 | |||
28,800 | Schlumberger Ltd. | 1,925,280 | |||
12,370 | Valero Energy Corp. | 834,109 | |||
19,094,729 | |||||
Financials (20.8%) | |||||
16,210 | A.G. Edwards, Inc. | 874,692 | |||
35,720 | American International Group, Inc. | 2,167,132 | |||
64,760 | Bank of America Corp. | 3,337,083 | |||
7,270 | Bear Stearns Cos., Inc. (The) | 1,031,395 | |||
106,680 | Citigroup, Inc. | 5,153,710 | |||
41,350 | First Horizon National Corp. | 1,732,565 | |||
35,830 | First Marblehead Corp. (The) | 1,641,014 |
Shares | Security | Value | |||
Common Stocks, continued | |||||
Financials, continued | |||||
17,550 | Global Payments, Inc. | $ | 746,577 | ||
6,350 | Goldman Sachs Group, Inc. (The) | 969,963 | |||
13,250 | Hartford Financial Services Group, Inc. (The) | 1,124,130 | |||
90,385 | JPMorgan Chase & Co. | 4,123,363 | |||
43,650 | KeyCorp | 1,610,685 | |||
19,600 | Lehman Brothers Holdings, Inc. | 1,273,020 | |||
27,710 | MetLife, Inc. | 1,440,920 | |||
102,630 | New York Community Bancorp, Inc. | 1,675,948 | |||
27,010 | U.S. Bancorp | 864,320 | |||
21,320 | Wachovia Corp. | 1,143,392 | |||
48,860 | Wells Fargo & Co. | 3,534,532 | |||
34,444,441 | |||||
Health Care (15.0%) | |||||
41,510 | Abbott Laboratories | 1,982,933 | |||
19,280 | Amgen, Inc. (b) | 1,344,587 | |||
27,780 | Biomet, Inc. | 915,073 | |||
43,960 | Caremark Rx, Inc. | 2,321,089 | |||
29,710 | Community Health Systems, Inc. (b) | 1,077,285 | |||
9,700 | Genentech, Inc. (b) | 783,954 | |||
16,220 | Genzyme Corp. (b) | 1,107,502 | |||
19,630 | Gilead Sciences, Inc. (b) | 1,206,852 | |||
17,720 | Health Net, Inc. (b) | 743,708 | |||
42,066 | Johnson & Johnson | 2,631,229 | |||
18,070 | Medtronic, Inc. | 912,896 | |||
30,220 | Merck & Co., Inc. | 1,216,959 | |||
42,858 | Pfizer, Inc. | 1,113,879 | |||
16,070 | Quest Diagnostics, Inc. | 966,128 | |||
39,960 | Sanofi-Aventis ADR | 1,893,704 | |||
97,930 | Schering-Plough Corp. | 2,001,689 | |||
52,090 | Wyeth | 2,524,803 | |||
24,744,270 | |||||
Industrials (6.8%) | |||||
11,390 | Boeing Co. (The) | 881,814 | |||
10,350 | Fluor Corp. | 909,041 | |||
155,300 | General Electric Co. | 5,076,757 | |||
16,850 | Joy Global, Inc. | 632,212 | |||
16,100 | Precision Castparts Corp. | 960,365 | |||
46,090 | QLogic Corp. (b) | 806,114 | |||
31,390 | Tyco International Ltd. | 818,965 | |||
32,790 | Waste Management, Inc. | 1,127,320 | |||
11,212,588 | |||||
Information Technology (13.6%) | |||||
183,650 | 3Com Corp. (b) | 870,501 | |||
22,790 | Citrix Systems, Inc. (b) | 724,038 | |||
34,880 | Freescale Semiconductor, Inc. (b) | 994,778 | |||
4,870 | Google, Inc., Class A (b) | 1,882,742 | |||
40,110 | Hewlett-Packard Co. | 1,279,910 | |||
84,910 | Intel Corp. | 1,528,380 | |||
32,660 | International Business Machines Corp. | 2,528,211 | |||
32,710 | Intersil Corp., Class A | 769,012 |
See notes to financial statements.
58
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security | Value | |||
Common Stocks, continued | |||||
Information Technology, continued | |||||
13,860 | ITT Educational Services, Inc. (b) | $ | 934,441 | ||
30,140 | Marvell Technology Group, Ltd. (b) | 559,097 | |||
56,530 | Micron Technology, Inc. (b) | 881,303 | |||
122,310 | Microsoft Corp. | 2,939,109 | |||
116,680 | Motorola, Inc. | 2,655,637 | |||
57,580 | Oracle Corp. (b) | 861,973 | |||
116,830 | PMC-Sierra, Inc. (b) | 597,001 | |||
24,790 | QUALCOMM, Inc. | 874,095 | |||
28,250 | Red Hat, Inc. (b) | 668,960 | |||
107,910 | TIBCO Software, Inc. (b) | 858,964 | |||
22,408,152 | |||||
Materials (1.5%) | |||||
24,090 | Alcoa, Inc. | 721,496 | |||
20,840 | Dow Chemical Co. (The) | 720,647 | |||
12,760 | Phelps Dodge Corp. | 1,114,458 | |||
2,556,601 | |||||
Real Estate Investment Trust (1.5%) | |||||
35,410 | Apartment Investment & Management Co. | 1,702,867 | |||
72,020 | HRPT Properties Trust | 846,235 | |||
2,549,102 | |||||
Telecommunications (4.0%) | |||||
13,030 | ALLTEL Corp. | 718,865 | |||
51,510 | AT&T, Inc. | 1,544,785 |
Shares | Security | Value | ||||
Common Stocks, continued | ||||||
Telecommunications, continued | ||||||
29,430 | BellSouth Corp. | $ | 1,152,773 | |||
19,900 | Harris Corp. | 906,445 | ||||
39,600 | Sprint Nextel Corp. | 784,080 | ||||
42,830 | Verizon Communications, Inc. | 1,448,511 | ||||
6,555,459 | ||||||
Transportation (0.4%) | ||||||
27,480 | SkyWest, Inc. | 666,390 | ||||
Utilities (3.2%) | ||||||
44,500 | Edison International | 1,841,410 | ||||
41,570 | PPL Corp. | 1,414,211 | ||||
86,430 | Williams Cos., Inc. (The) | 2,095,928 | ||||
5,351,549 | ||||||
Total Common Stocks (Cost $157,601,027) | 162,574,392 | |||||
Investment Company (2.2%) | ||||||
3,623,709 | Victory Institutional Money Market Fund, Investor Shares | 3,623,709 | ||||
Total Investment Company (Cost $3,623,709) | 3,623,709 | |||||
Total Investments (Cost $161,224,736) (a)—100.6% | 166,198,101 | |||||
Liabilities in excess of other assets—(0.6)% | (915,028 | ) | ||||
Net Assets—100.0% | $ | 165,283,073 | ||||
(a) | Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by the amount of losses recognized for financial reporting purposes in excess of federal income tax reporting of approximately $109,780. Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: |
Unrealized appreciation | $ | 11,998,967 | ||
Unrealized depreciation | (7,135,382 | ) | ||
Net unrealized appreciation | $ | 4,863,585 | ||
(b) | Non-income producing security. |
ADR—American | Depositary Receipt |
See notes to financial statements.
59
PACIFIC CAPITAL FUNDS
Value Fund
Schedule of Portfolio Investments
July 31, 2006
Shares | Security | Value | |||
Common Stocks (99.1%) | |||||
Consumer Discretionary (7.4%) | |||||
8,970 | Burlington Northern Santa Fe Corp. | $ | 618,123 | ||
22,330 | Comcast Corp., Class A (b) | 767,705 | |||
14,610 | J.C. Penney Co., Inc. (Holding Co.) | 919,846 | |||
50,490 | Kroger Co. (The) | 1,157,736 | |||
48,970 | McDonald’s Corp. | 1,733,048 | |||
46,390 | Newell Rubbermaid, Inc. | 1,222,840 | |||
21,330 | Tiffany & Co. | 673,815 | |||
93,410 | Time Warner, Inc. | 1,541,265 | |||
12,650 | VF Corp. | 857,923 | |||
58,430 | Walt Disney Co. (The) | 1,734,787 | |||
11,227,088 | |||||
Consumer Staples (6.1%) | |||||
25,524 | Altria Group, Inc. | 2,041,154 | |||
16,820 | Coca-Cola Co. (The) | 748,490 | |||
49,490 | CVS Corp. | 1,619,313 | |||
23,080 | Pepsi Bottling Group, Inc. (The) | 767,410 | |||
71,980 | Procter & Gamble Co. (The) | 4,045,276 | |||
9,221,643 | |||||
Energy (16.5%) | |||||
11,160 | Apache Corp. | 786,445 | |||
19,130 | Arch Coal, Inc. | 725,792 | |||
50,500 | Chevrontexaco Corp. | 3,321,890 | |||
56,260 | CMS Energy Corp. (b) | 788,203 | |||
35,400 | ConocoPhillips | 2,429,856 | |||
24,620 | Denbury Resources, Inc. (b) | 853,575 | |||
14,320 | ENSCO International, Inc. | 661,870 | |||
15,220 | Entergy Corp. | 1,173,462 | |||
101,848 | Exxon Mobil Corp. | 6,899,185 | |||
14,900 | Hess Corp. | 788,210 | |||
21,320 | Nabors Industries Ltd. (b) | 753,022 | |||
15,180 | NRG Energy, Inc. (b) | 747,615 | |||
24,840 | Occidental Petroleum Corp. | 2,676,510 | |||
10,170 | Questar Corp. | 901,062 | |||
13,110 | TXU Corp. | 842,055 | |||
11,950 | Valero Energy Corp. | 805,789 | |||
25,154,541 | |||||
Financials (31.3%) | |||||
15,420 | A.G. Edwards, Inc. | 832,063 | |||
42,900 | American International Group, Inc. | 2,602,743 | |||
104,480 | Bank of America Corp. | 5,383,853 | |||
8,140 | Bear Stearns Cos., Inc. (The) | 1,154,822 | |||
139,280 | Citigroup, Inc. | 6,728,616 | |||
34,980 | First Horizon National Corp. | 1,465,662 | |||
31,320 | First Marblehead Corp. (The) | 1,434,456 | |||
7,210 | Goldman Sachs Group, Inc. (The) | 1,101,328 | |||
50,430 | Greater Bay Bancorp | 1,444,315 | |||
14,490 | Hartford Financial Services Group, Inc. (The) | 1,229,332 | |||
112,029 | JPMorgan Chase & Co. | 5,110,763 | |||
44,630 | KeyCorp | 1,646,847 | |||
21,960 | Lehman Brothers Holdings, Inc. | 1,426,302 |
Shares | Security | Value | |||
Common Stocks, continued | |||||
Financials, continued | |||||
37,990 | MetLife, Inc. | $ | 1,975,480 | ||
93,710 | New York Community Bancorp, Inc. | 1,530,284 | |||
11,280 | Prudential Financial, Inc. | 887,059 | |||
57,140 | South Financial Group, Inc. (The) | 1,543,923 | |||
26,970 | SunTrust Banks, Inc. | 2,127,124 | |||
27,550 | U.S. Bancorp | 881,600 | |||
61,040 | Wachovia Corp. | 3,273,575 | |||
54,090 | Wells Fargo & Co. | 3,912,871 | |||
47,693,018 | |||||
Health Care (9.1%) | |||||
16,670 | Abbott Laboratories | 796,326 | |||
10,700 | Amgen, Inc. (b) | 746,218 | |||
20,890 | Biomet, Inc. | 688,117 | |||
17,160 | Caremark Rx, Inc. | 906,048 | |||
20,280 | Community Health Systems, Inc. (b) | 735,353 | |||
11,650 | Gilead Sciences, Inc. (b) | 716,242 | |||
33,360 | Merck & Co., Inc. | 1,343,407 | |||
104,960 | Pfizer, Inc. | 2,727,910 | |||
12,230 | Quest Diagnostics, Inc. | 735,268 | |||
33,230 | Sanofi-Aventis ADR | 1,574,770 | |||
36,410 | Schering-Plough Corp. | 744,220 | |||
43,300 | Wyeth | 2,098,751 | |||
13,812,630 | |||||
Industrials (5.7%) | |||||
10,710 | Ashland, Inc. | 712,322 | |||
124,520 | General Electric Co. | 4,070,558 | |||
15,150 | Precision Castparts Corp. | 903,697 | |||
17,010 | Republic Services, Inc. | 683,122 | |||
15,270 | Rockwell Collins, Inc. | 814,960 | |||
7,780 | Textron, Inc. | 699,500 | |||
13,830 | United Technologies Corp. | 860,088 | |||
8,744,247 | |||||
Information Technology (4.0%) | |||||
155,460 | 3Com Corp. (b) | 736,880 | |||
24,370 | Freescale Semiconductor, Inc. (b) | 695,032 | |||
36,523 | Hewlett-Packard Co. | 1,165,449 | |||
9,530 | International Business Machines Corp. | 737,717 | |||
86,900 | Motorola, Inc. | 1,977,845 | |||
88,230 | TIBCO Software, Inc. (b) | 702,311 | |||
6,015,234 | |||||
Materials (3.1%) | |||||
14,880 | Albemarle Corp. | 750,250 | |||
19,540 | Century Aluminum Co. (b) | 603,200 | |||
17,980 | Dow Chemical Co. (The) | 621,748 | |||
19,750 | Glamis Gold Ltd. (b) | 726,998 | |||
13,540 | Phelps Dodge Corp. | 1,182,583 | |||
17,820 | Plains Exploration & Production Co. (b) | 783,367 | |||
4,668,146 | |||||
See notes to financial statements.
60
PACIFIC CAPITAL FUNDS
Value Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares | Security | Value | |||
Common Stocks, continued | |||||
Real Estate Investment Trust (5.0%) | |||||
30,770 | AMB Property Corp. | $ | 1,613,271 | ||
33,150 | Apartment Investment & Management Co. | 1,594,184 | |||
38,110 | Health Care REIT, Inc. | 1,379,201 | |||
123,680 | HRPT Properties Trust | 1,453,240 | |||
31,820 | Mack-Cali Realty Corp. | 1,537,224 | |||
7,577,120 | |||||
Telecommunications (5.6%) | |||||
11,200 | ALLTEL Corp. | 617,904 | |||
22,060 | America Movil SA de CV | 789,307 | |||
87,440 | AT&T, Inc. | 2,622,325 | |||
46,700 | BellSouth Corp. | 1,829,239 | |||
33,730 | Sprint Nextel Corp. | 667,854 | |||
60,450 | Verizon Communications, Inc. | 2,044,419 | |||
8,571,048 | |||||
Transportation (0.4%) | |||||
23,470 | SkyWest, Inc. | 569,148 | |||
Shares | Security | Value | |||
Common Stocks, continued | |||||
Utilities (4.9%) | |||||
40,800 | Edison International | $ | 1,688,304 | ||
27,280 | Exelon Corp. | 1,579,512 | |||
18,600 | FirstEnergy Corp. | 1,041,600 | |||
17,130 | FPL Group, Inc. | 738,988 | |||
47,900 | PPL Corp. | 1,629,558 | |||
33,540 | Williams Cos., Inc. (The) | 813,345 | |||
7,491,307 | |||||
Total Common Stocks (Cost $135,801,922) | 150,745,170 | ||||
Investment Company (0.5%) | |||||
758,213 | Victory Institutional Money Market Fund, Investor Shares | 758,213 | |||
Total Investment Company (Cost $758,213) | 758,213 | ||||
Total Investments (Cost $136,560,135) (a)—99.6% | 151,503,383 | ||||
Other assets in excess of liabilities—0.4% | 678,083 | ||||
Net Assets—100.0% | $ | 152,181,466 | |||
(a) | Represents cost for financial reporting and differs from cost basis for federal income tax purposes by the amount of losses recognized for financial reporting purposes in excess of federal income tax reporting of approximately $288,059. Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: |
Unrealized appreciation | $ | 16,418,605 | ||
Unrealized depreciation | (1,763,416 | ) | ||
Net unrealized appreciation | $ | 14,655,189 | ||
(b) | Non-income producing security. |
ADR—American | Depositary Receipt |
See notes to financial statements.
61
PACIFIC CAPITAL FUNDS
High Grade Core Fixed Income Fund
Schedule of Portfolio Investments
July 31, 2006
Shares or Principal Amount | Security | Value | ||||
| U.S. Government Agency Mortgage-Backed Obligations (32.4%) | |||||
Federal Home Loan Mortgage Corp. (6.1%) | ||||||
$ | 3,382,761 | 5.00%, 4/1/21 | $ | 3,284,424 | ||
3,350,918 | 5.50%, 4/1/21 | 3,315,298 | ||||
4,046,387 | 6.00%, 7/1/21 | 4,075,440 | ||||
5,536,184 | 5.50%, 3/1/35 | 5,383,939 | ||||
2,088,513 | 6.00%, 4/1/36 | 2,077,621 | ||||
18,136,722 | ||||||
Federal National Mortgage Assoc. (24.4%) | ||||||
2,891,370 | 4.50%, 6/1/14 | 2,772,101 | ||||
3,833,270 | 4.50%, 3/1/19 | 3,657,170 | ||||
3,650,111 | 5.00%, 10/1/33 | 3,455,556 | ||||
864,795 | 5.00%, 3/1/34 | 818,701 | ||||
4,618,235 | 5.09%, 9/1/34 | 4,427,364 | ||||
4,907,332 | 5.106%*, 10/1/34 | 4,813,356 | ||||
8,007,205 | 5.50%, 2/1/35 | 7,799,498 | ||||
3,437,773 | 5.50%, 2/1/35 | 3,348,597 | ||||
2,894,642 | 5.00%, 4/1/35 | 2,740,355 | ||||
3,310,434 | 6.00%, 4/1/35 | 3,298,020 | ||||
4,977,332 | 5.00%, 7/1/35 | 4,712,035 | ||||
8,188,000 | 5.50%, 7/25/35 | 7,890,041 | ||||
3,801,498 | 5.00%, 8/1/35 | 3,598,346 | ||||
1,625,514 | 5.00%, 8/1/35 | 1,538,647 | ||||
5,676,124 | 5.50%, 10/1/35 | 5,514,485 | ||||
3,301,345 | 6.00%, 12/1/35 | 3,282,066 | ||||
2,701,455 | 6.00%, 3/1/36 | 2,685,408 | ||||
3,425,625 | 6.50%, 6/1/36 | 3,467,708 | ||||
2,052,827 | 6.50%, 6/1/36 | 2,078,046 | ||||
71,897,500 | ||||||
Government National Mortgage Assoc. (1.9%) | ||||||
2,712,470 | 6.00%, 10/15/35 | 2,714,987 | ||||
2,919,965 | 5.50%, 11/15/35 | 2,860,026 | ||||
5,575,013 | ||||||
| Total U.S. Government Agency Mortgage- Backed Obligations (Cost $95,276,428) | 95,609,235 | ||||
Commercial Paper (1.9%) | ||||||
Financials (1.9%) | ||||||
5,550,000 | American General Finance, 5.25%, 8/7/06 (b) | 5,544,334 | ||||
Total Commercial Paper (Cost $5,545,144) | 5,544,334 | |||||
Corporate Bonds (31.9%) | ||||||
Consumer Discretionary (2.3%) | ||||||
2,000,000 | Daimler Chrysler NA Holding Corp, 5.875%, 3/15/11 | 1,984,736 | ||||
1,400,000 | McDonald’s Corp., 6.50%, 8/1/07 | 1,408,750 | ||||
500,000 | Viacom, Inc., 5.75%, 4/30/11 (c) | 491,184 | ||||
2,500,000 | Wal-Mart Stores, Inc., 8.85%, 1/2/15 | 2,934,950 | ||||
6,819,620 | ||||||
Consumer Staples (3.6%) | ||||||
625,000 | Bestfoods, Series F, 6.625%, 4/15/28, MTN | 659,071 |
Shares or Principal Amount | Security | Value | ||||
Corporate Bonds, continued | ||||||
Consumer Staples, continued | ||||||
$ | 1,388,000 | Colgate-Palmolive Co., Series B, 7.60%, 5/19/25, MTN | $ | 1,681,215 | ||
300,000 | Kellogg Co., 2.875%, 6/1/08 | 286,597 | ||||
2,200,000 | Procter & Gamble Co. (The), 8.50%, 8/10/09 | 2,400,750 | ||||
3,000,000 | SABMiller PLC, | 3,053,706 | ||||
2,495,000 | Sysco Corp., 7.25%, 4/15/07 | 2,523,069 | ||||
10,604,408 | ||||||
Energy (3.8%) | ||||||
2,295,000 | Alabama Power Co., Series 1, 5.65%, 3/15/35, | 2,082,715 | ||||
5,000,000 | Amoco Corp., 6.50%, 8/1/07 | 5,037,500 | ||||
2,315,000 | Anadarko Petroleum Corp., 7.20%, 3/15/29 | 2,419,543 | ||||
1,030,000 | Atlantic Richfield Co., 8.50%, 4/1/12 | 1,183,397 | ||||
500,000 | Smith International, Inc., 6.00%, 6/15/16 | 501,988 | ||||
11,225,143 | ||||||
Financials (12.0%) | ||||||
Banking (3.5%) | ||||||
3,000,000 | Chase Manhattan Corp., 7.25%, 6/1/07 | 3,033,750 | ||||
2,150,000 | Countrywide Financial Corp., 5.665%*, 12/19/08, Series MTNA | 2,155,824 | ||||
1,288,629 | Fifth Third Bancorp, Series BKNT, 2.87%, 8/10/09 | 1,242,183 | ||||
3,825,000 | Washington Mutual Bank, 5.59%*, 5/20/13 | 3,830,305 | ||||
10,262,062 | ||||||
Financial Services (8.5%) | ||||||
2,900,000 | CIT Group, Inc., 5.00%, 11/24/08 | 2,873,314 | ||||
1,025,000 | FGIC Corp., 6.00%, 1/15/34 (c) | 984,497 | ||||
3,000,000 | General Electric Capital Corp., 8.625%, 6/15/08 | 3,164,931 | ||||
2,500,000 | Genworth Financial, Inc., 5.75%, 6/15/14 | 2,488,295 | ||||
1,000,000 | International Lease Finance Corp., Series MTNP, 5.91%*, 1/15/10, MTN | 1,006,250 | ||||
3,450,000 | International Lease Finance Corp., 5.85%, 7/13/12 | 3,453,795 | ||||
5,000,000 | SLM Corp., 5.625%*, 7/27/09 | 5,006,910 | ||||
3,997,636 | Toyota Motor Credit Corp., 2.75%, 8/6/09, MTN | 3,854,985 | ||||
2,450,000 | Toyota Motor Credit Corp., Series B, 5.42%, 3/22/17, Callable 3/22/07 @ 100, MTN | 2,365,041 | ||||
25,198,018 | ||||||
35,460,080 | ||||||
See notes to financial statements.
62
PACIFIC CAPITAL FUNDS
High Grade Core Fixed Income Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares or Principal Amount | Security | Value | ||||
Corporate Bonds, continued | ||||||
Health Care (1.1%) | ||||||
$ | 2,872,000 | Pharmacia Corp., 6.75%, 12/15/27 | $ | 3,153,077 | ||
Information Technology (1.1%) | ||||||
2,925,000 | Dell, Inc., 7.10%, 4/15/28 | 3,217,500 | ||||
Pharmaceuticals (0.3%) | ||||||
950,000 | Abbott Laboratories, 5.60%, 5/15/11 | 954,051 | ||||
Supranational Agency (2.5%) | ||||||
1,860,000 | African Development Bank, 6.875%, 10/15/15 | 2,022,358 | ||||
4,779,000 | Inter-American Development Bank, 8.50%, 3/15/11 | 5,385,479 | ||||
7,407,837 | ||||||
Telecommunications (1.6%) | ||||||
4,075,000 | GTE Southwest, Inc., First Mortgage Bond, 8.50%, 11/15/31 | 4,655,688 | ||||
Transportation (3.6%) | ||||||
835,073 | Burlington Northern & Santa Fe Railway Co. (The), | 809,111 | ||||
5,132,967 | FedEx Corp., Pass Thru Certificates, 7.50%, 1/15/18 | 5,602,674 | ||||
4,300,000 | Hawaii Superferry, Inc., 5.73%, 4/30/28 | 4,234,210 | ||||
10,645,995 | ||||||
Total Corporate Bonds (Cost $94,334,598) | 94,143,399 | |||||
U.S. Government Agencies (15.4%) | ||||||
Federal Agricultural Mortgage Corp. (0.3%) | ||||||
1,000,000 | 4.25%, 7/29/08 | 981,250 | ||||
Federal Home Loan Bank (6.1%) | ||||||
4,100,000 | 5.00%, 10/27/08 | 4,059,832 | ||||
2,000,000 | 5.02%, 11/7/08, | 1,986,876 | ||||
5,000,000 | 5.75%, 8/7/09, | 5,011,185 | ||||
1,000,000 | 4.50%, 8/21/09, | 997,786 | ||||
3,000,000 | 7.625%, 5/14/10 | 3,248,838 | ||||
400,000 | 5.41%*, 5/26/10 | 397,500 | ||||
2,000,000 | 4.00%, 12/30/10, | 1,965,464 | ||||
535,000 | 4.87%, 9/7/12 (e) | 517,767 | ||||
18,185,248 | ||||||
Federal Home Loan Mortgage Corp. (3.9%) | ||||||
2,025,000 | 3.00%, 4/19/07, MTN (d)(e) | 1,990,761 | ||||
3,500,000 | 5.00%, 1/28/08, Callable | 3,480,956 |
Shares or Principal Amount | Security | Value | |||||
U.S. Government Agencies, continued | |||||||
Federal Home Loan Mortgage Corp., continued | |||||||
$ | 1,500,000 | 6.25%, 3/5/12 | $ | 1,505,612 | |||
1,500,000 | 6.00%, 11/20/15, Callable | 1,488,927 | |||||
3,000,000 | 6.25%, 4/7/21, Callable | 2,968,839 | |||||
11,435,095 | |||||||
Federal National Mortgage Assoc. (1.6%) | |||||||
3,000,000 | 5.55%, 11/10/08, | 2,995,725 | |||||
750,000 | 3.63%, 12/28/09, | 739,688 | |||||
1,000,000 | 6.875%, 9/10/12 | 1,013,191 | |||||
4,748,604 | |||||||
Private Export Funding Corp. (1.3%) | |||||||
565,000 | 7.11%, 4/15/07 | 571,356 | |||||
3,105,000 | 6.67%, 9/15/09 | 3,240,844 | |||||
3,812,200 | |||||||
Small Business Administration Corp. (0.6%) | |||||||
1,750,295 | Small Business Administration Corp., 6.34%, 8/1/11 | 1,793,945 | |||||
Sovereign Agency (1.6%) | |||||||
4,707,055 | New Valley Generation IV, 4.69%, 1/15/22 | 4,592,438 | |||||
| Total U.S. Government Agencies (Cost $45,308,374) | 45,548,780 | |||||
U.S. Treasury Bonds (10.9%) | |||||||
7,900,000 | 7.25%, 5/15/16 | 9,250,410 | |||||
2,850,000 | 7.875%, 2/15/21 | 3,633,753 | |||||
11,000,000 | 6.25%, 8/15/23 | 12,320,869 | |||||
6,815,000 | 5.50%, 8/15/28 | 7,118,472 | |||||
Total U.S. Treasury Bonds (Cost $31,975,663) | 32,323,504 | ||||||
U.S. Treasury Notes (6.6%) | |||||||
3,150,000 | 4.375%, 5/15/07 | 3,132,407 | |||||
5,000,000 | 4.875%, 4/30/08 | 4,990,430 | |||||
3,000,000 | 4.00%, 6/15/09 | 2,927,346 | |||||
1,500,000 | 4.75%, 3/31/11 | 1,490,040 | |||||
7,000,000 | 4.75%, 5/15/14 | 6,909,224 | |||||
Total U.S. Treasury Notes (Cost $19,678,370) | 19,449,447 | ||||||
Investment Company (1.4%) | |||||||
4,205,374 | Victory Institutional Money Market Fund, Investor Shares | 4,205,374 | |||||
Total Investment Company (Cost $4,205,374) | 4,205,374 | ||||||
| Total Investments (Cost $296,323,951) (a)—100.5% | 296,824,073 | |||||
Liabilities in excess of other assets—(0.5)% | (1,510,229 | ) | |||||
Net Assets—100.0% | $ | 295,313,844 | |||||
See notes to financial statements.
63
PACIFIC CAPITAL FUNDS
High Grade Core Fixed Income Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
* | Variable rate security. Rate presented represents rate in effect at July 31, 2006. Maturity reflects final maturity date. |
(a) | Represents cost for financial reporting and federal income tax purposes. Gross unrealized appreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 3,704,852 | ||
Unrealized depreciation | (3,204,730 | ) | ||
Net unrealized appreciation | $ | 500,122 | ||
(b) | Rate disclosed represents effective yield at July 31, 2006. |
(c) | Restricted Security. |
(d) | This security has a rate that periodically changes. Rate presented represents rate in effect at July 31, 2006. |
(e) | Security continuously callable with five days notice. |
LLC—Limited Liability Corporation
MTN—Medium Term Note
PLC—Public Limited Company
See notes to financial statements.
64
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments
July 31, 2006
Shares or Principal Amount | Security | Value | ||||
Alternative Minimum Tax Paper (13.5%) | ||||||
Hawaii (12.0%) | ||||||
$ | 3,000,000 | Hawaii Airport System Revenue, 5.625%, 7/1/18, Callable | $ | 3,185,070 | ||
15,375,000 | Hawaii Airport System Revenue, Second Series, 6.90%, 7/1/12, Escrowed to Maturity, MBIA | 16,916,037 | ||||
3,000,000 | Hawaii Department of Budget & Finance Special Purpose Revenue, Hawaiian Electric Co., 5.70%, 7/1/20, Callable | 3,170,550 | ||||
5,000,000 | Hawaii Department of Budget & Finance Special Purpose Revenue, Hawaiian Electric Co., Series A, 6.20%, 5/1/26, Callable | 5,060,300 | ||||
5,200,000 | Hawaii Department of Budget & Finance Special Purpose Revenue, Hawaiian Electric Co., Series A, 5.65%, 10/1/27, Callable 10/1/12 @ 101, MBIA | 5,557,864 | ||||
1,500,000 | Hawaii Harbor System Revenue, Series B, 5.50%, 7/1/19, Callable | 1,585,800 | ||||
35,475,621 | ||||||
Virginia (1.5%) | ||||||
4,605,000 | Virginia State Housing Development Authority, Series C, 4.25%, 7/1/13 | 4,577,600 | ||||
| Total Alternative Minimum Tax Paper (Cost $37,651,781) | 40,053,221 | ||||
Municipal Bonds (85.2%) | ||||||
Arizona (3.3%) | ||||||
2,150,000 | Phoenix Civic Improvement Corp. Revenue, 5.25%, 7/1/16, Callable 7/1/07 @ 100, MBIA | 2,178,359 | ||||
7,255,000 | Phoenix Civic Improvement Corp., District Revenue, | 5,877,711 | ||||
1,605,000 | Scottsdale GO, 5.375%, 7/1/16, Callable 7/1/11 @ 101 | 1,735,069 | ||||
9,791,139 | ||||||
California (2.2%) | ||||||
5,000,000 | California State GO, 5.00%, 9/1/21, Callable 9/1/16 @ 100 | 5,229,500 | ||||
1,275,000 | California State Variable GO, 5.00%, 8/1/33, Callable | 1,303,726 | ||||
6,533,226 | ||||||
Shares or Principal Amount | Security | Value | ||||
Municipal Bonds, continued | ||||||
Connecticut (0.7%) | ||||||
$ | 2,000,000 | Connecticut State Health & Educational Facility Authority Revenue, University of Hartford, Series G, 5.25%, 7/1/26, Callable | $ | 2,097,580 | ||
Florida (4.2%) | ||||||
3,500,000 | Florida State Turnpike Authority Revenue, Department of Transportation, Series A, | 3,779,930 | ||||
2,000,000 | Hillsborough County Aviation Authority Revenue, | 2,099,580 | ||||
2,000,000 | Miami-Dade County Expressway Authority Toll System Revenue, 6.00%, 7/1/20, Prerefunded 7/1/10 @ 101, FGIC | 2,177,980 | ||||
3,725,000 | Orlando Utilities Community Water & Electric Revenue, Series D, 6.75%, 10/1/17, Escrowed to Maturity | 4,372,405 | ||||
12,429,895 | ||||||
Georgia (4.6%) | ||||||
390,000 | Georgia Municipal Electric Authority Power Revenue, Series W, 6.60%, 1/1/18, Escrowed to Maturity, MBIA | 476,135 | ||||
6,420,000 | Georgia Municipal Electric Authority Power Revenue, Series W, 6.60%, 1/1/18, MBIA | 7,439,174 | ||||
2,330,000 | Metropolitan Atlanta Rapid Transportation Authority Sales Tax Revenue, Series P, | 2,531,941 | ||||
2,800,000 | Milledgeville Water & Sewer Revenue, 6.00%, 12/1/16, FSA | 3,174,276 | ||||
13,621,526 | ||||||
Hawaii (44.4%) | ||||||
2,000,000 | Hawaii County GO, Series A, 5.50%, 5/1/08, FGIC | 2,058,100 | ||||
605,000 | Hawaii County GO, Series A, 5.60%, 5/1/13, FGIC | 664,308 | ||||
1,065,000 | Hawaii County GO, Series A, 5.50%, 7/15/14, Callable | 1,138,048 | ||||
1,340,000 | Hawaii County GO, Series A, 5.50%, 7/15/15, Callable | 1,430,048 |
See notes to financial statements.
65
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares or Principal Amount | Security | Value | ||||
Municipal Bonds, continued | ||||||
Hawaii, continued | ||||||
$ | 2,000,000 | Hawaii County GO, Series A, 5.50%, 5/15/16, Callable | $ | 2,106,880 | ||
3,000,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Series A, 4.95%, 4/1/12, MBIA | 3,163,140 | ||||
2,000,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Series A, 5.50%, 12/1/14, Callable 12/1/09 @ 101, AMBAC | 2,115,800 | ||||
2,500,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Queens Health System, Series B, | 2,616,925 | ||||
2,340,000 | Hawaii Housing Finance & Development Corp., University of Hawaii Faculty Housing Project Revenue, | 2,359,048 | ||||
2,000,000 | Hawaii State GO, Series BZ, 6.00%, 10/1/12, FGIC | 2,231,420 | ||||
1,350,000 | Hawaii State GO, Series CH, 4.75%, 11/1/11, MBIA | 1,405,823 | ||||
1,335,000 | Hawaii State GO, Series CH, 4.75%, 11/1/13, MBIA | 1,400,789 | ||||
3,000,000 | Hawaii State GO, Series CM, 6.50%, 12/1/13, FGIC | 3,480,360 | ||||
1,500,000 | Hawaii State GO, Series CN, 6.25%, 3/1/08, FGIC | 1,556,880 | ||||
665,000 | Hawaii State GO, Series CP, 5.00%, 10/1/12, Callable | 680,388 | ||||
1,520,000 | Hawaii State GO, Series CP, 5.00%, 10/1/13, Callable | 1,555,173 | ||||
3,075,000 | Hawaii State GO, Series CP, 5.00%, 10/1/15, Prerefunded 10/1/07 @ 101, FGIC | 3,151,106 | ||||
1,235,000 | Hawaii State GO, Series CP, 5.00%, 10/1/15, Callable | 1,262,726 | ||||
860,000 | Hawaii State GO, Series CP, 5.00%, 10/1/16, Callable | 879,307 | ||||
590,000 | Hawaii State GO, Series CP, 5.00%, 10/1/17, Callable | 602,974 | ||||
1,460,000 | Hawaii State GO, Series CP, 5.00%, 10/1/17, Prerefunded 10/1/07 @ 101, FGIC | 1,496,135 |
Shares or Principal Amount | Security | Value | ||||
Municipal Bonds, continued | ||||||
Hawaii, continued | ||||||
$ | 2,000,000 | Hawaii State GO, Series CT, 5.875%, 9/1/16, Prerefunded 9/1/09 @ 101, FSA | $ | 2,140,820 | ||
2,000,000 | Hawaii State GO, Series CT, 5.875%, 9/1/17, Prerefunded 9/1/09 @ 101, FSA | 2,140,820 | ||||
500,000 | Hawaii State GO, Series CY, 5.75%, 2/1/15, FSA | 559,815 | ||||
2,080,000 | Hawaii State GO, Series DD, 5.00%, 5/1/16, Callable | 2,198,768 | ||||
1,000,000 | Hawaii State GO, Series DD, 5.00%, 5/1/17, Callable | 1,053,710 | ||||
1,560,000 | Hawaii State GO, Series DD, 5.00%, 5/1/18, Callable | 1,638,530 | ||||
2,680,000 | Hawaii State GO, Series DD, 5.00%, 5/1/18, Prerefunded 5/1/14 @ 100, MBIA | 2,867,868 | ||||
1,000,000 | Hawaii State Highway Revenue, 5.25%, 7/1/14, Prerefunded 7/1/08 @ 101, FGIC | 1,037,450 | ||||
2,325,000 | Hawaii State Highway Revenue, 5.375%, 7/1/15, Prerefunded 7/1/11 @ 100, FSA | 2,488,634 | ||||
1,350,000 | Hawaii State Highway Revenue, 5.375%, 7/1/17, Prerefunded 7/1/10 @ 100, FSA | 1,428,057 | ||||
2,530,000 | Hawaii State Highway Revenue, 5.375%, 7/1/18, Prerefunded 7/1/10 @ 100, FSA | 2,676,285 | ||||
2,970,000 | Honolulu City & County Board of Water Supply System Revenue, Series A, 4.75%, 7/1/18, Callable 7/1/14 @ 100, FGIC | 3,072,821 | ||||
10,865,000 | Honolulu City & County Board of Water Supply System Revenue, Series A, 4.75%, 7/1/31, Callable 7/1/16 @ 100, MBIA | 10,864,564 | ||||
6,450,000 | Honolulu City & County GO, 5.00%, Callable 7/1/15 @ 100 7/1/20 | 6,771,338 | ||||
875,000 | Honolulu City & County GO, Series A, 6.00%, 1/1/11, FGIC | 950,985 | ||||
4,820,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/11, Escrowed to Maturity, FGIC | 5,219,915 | ||||
1,865,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/12, FGIC | 2,041,616 | ||||
850,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/13, Escrowed to Maturity, FGIC | 942,463 |
See notes to financial statements.
66
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares or Principal Amount | Security | Value | ||||
Municipal Bonds, continued | ||||||
Hawaii, continued | ||||||
$ | 3,345,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/13, FGIC | $ | 3,698,567 | ||
1,670,000 | Honolulu City & County GO, Series A, 5.625%, 9/1/13, Prerefunded 9/1/08 @ 100, FGIC | 1,733,326 | ||||
3,500,000 | Honolulu City & County GO, Series A, 5.375%, 9/1/18, Prerefunded 9/1/11 @ 100, FSA | 3,753,960 | ||||
6,250,000 | Honolulu City & County GO, Series A, 5.00%, 7/1/19, Callable 7/1/15 @ 100, MBIA | 6,585,000 | ||||
1,000,000 | Honolulu City & County GO, Series B, 5.125%, 7/1/10, Callable 7/1/09 @ 101, FGIC | 1,046,810 | ||||
640,000 | Honolulu City & County GO, Series B, 5.25%, 10/1/12, FGIC | 687,968 | ||||
2,595,000 | Honolulu City & County GO, Series B, 5.125%, 7/1/18, Callable 7/1/09 @ 101, FGIC | 2,716,472 | ||||
2,500,000 | Honolulu City & County GO, Series C, 5.125%, 7/1/16, Callable 7/1/09 @ 101, FGIC | 2,602,250 | ||||
2,000,000 | Honolulu City & County Waste Water System Revenue, Junior Series, 5.00%, 7/1/23, Callable 7/1/09 @ 101, FGIC | 2,059,260 | ||||
2,320,000 | Honolulu City & County Water GO, 6.00%, 12/1/11, Escrowed to Maturity, FGIC | 2,565,108 | ||||
3,460,000 | Honolulu Hawaii City & County, 5.25%, 7/1/19, Callable | 3,716,974 | ||||
2,125,000 | Honolulu Hawaii City & County GO, Series A, 6.00%, 1/1/11, Escrowed to Maturity, FGIC | 2,314,040 | ||||
1,340,000 | Kauai County GO, Series C, 5.90%, 8/1/09, AMBAC | 1,420,105 | ||||
1,000,000 | Maui County GO, | 1,049,760 | ||||
1,160,000 | Maui County GO, Series A, 5.125%, 3/1/15, Prerefunded 3/1/08 @ 101, FGIC | 1,195,844 | ||||
2,040,000 | Maui County GO, Series A, 5.375%, 3/1/17, Prerefunded 3/1/08 @ 101, FGIC | 2,110,768 | ||||
1,125,000 | Maui County GO, Series C, 5.25%, 3/1/18, Callable | 1,181,813 | ||||
1,000,000 | University of Hawaii System Revenue, Series A, | 1,081,450 |
Shares or Principal Amount | Security | Value | ||||
Municipal Bonds, continued | ||||||
Hawaii, continued | ||||||
$ | 1,205,000 | University of Hawaii System Revenue, Series A, | $ | 1,293,905 | ||
1,000,000 | University of Hawaii System Revenue, Series A, | 1,067,790 | ||||
131,331,007 | ||||||
Illinois (2.2%) | ||||||
2,000,000 | Chicago Midway Airport Revenue, Series C, | 2,195,940 | ||||
2,000,000 | Illinois State Sales Tax Revenue, First Series, 6.00%, 6/15/23, FGIC | 2,375,440 | ||||
2,330,000 | Kankakee & Will Counties GO, Community Unit School District No 005, 4.94%, 5/1/23, FSA (b) | 1,035,918 | ||||
2,185,000 | Kankakee & Will Counties GO, Community Unit School District No 005, 4.96%, 5/1/24, FSA (b) | 920,737 | ||||
6,528,035 | ||||||
Indiana (1.3%) | ||||||
3,080,000 | Carmel Redevelopment Authority Lease, Capital Appreciation Performing Arts Center, | 1,274,042 | ||||
3,500,000 | Carmel Redevelopment Authority Lease, Capital Appreciation Performing Arts Center, | 1,369,095 | ||||
1,000,000 | Tri School Indiana School Revenue, 5.00%, 7/15/15, FSA | 1,055,170 | ||||
3,698,307 | ||||||
Kentucky (0.5%) | ||||||
1,250,000 | Kentucky State Property & Buildings Commission Revenue, 2nd Series, 5.50%, 11/1/16, FSA | 1,356,213 | ||||
Massachusetts (0.4%) | ||||||
1,000,000 | Massachusetts State GO, Series C, 5.75%, 10/1/20, Prerefunded 10/1/10 @ 100 | 1,073,550 | ||||
Michigan (2.3%) | ||||||
1,000,000 | Kentwood Public Schools GO, 5.00%, 5/1/16, Callable | 1,051,300 | ||||
3,000,000 | Michigan Municipal Building Authority Revenue, Clean Water Revolving Fund, | 3,223,680 |
See notes to financial statements.
67
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares or Principal Amount | Security | Value | ||||
Municipal Bonds, continued | ||||||
Michigan, continued | ||||||
$ | 2,245,000 | Michigan State Strategic Fund Ltd. Obligation Revenue, 6.95%, 5/1/11, FGIC | $ | 2,537,748 | ||
6,812,728 | ||||||
Missouri (0.7%) | ||||||
2,000,000 | University of Missouri Revenue, Series B, 5.375%, 11/1/16, Callable 11/1/11 @ 100 | 2,142,480 | ||||
New York (4.3%) | ||||||
5,165,000 | New York, New York GO, Series J, 5.00%, 6/1/21, Callable 6/1/16 @ 100 | 5,376,300 | ||||
5,000,000 | New York, New York GO, Series J, 5.00%, 6/1/24, Callable 6/1/16 @ 100 | 5,168,400 | ||||
2,000,000 | New York State Thruway Authority Revenue, Highway & Bridge Trust Fund, Series A, 5.80%, 4/1/18, Callable | 2,158,520 | ||||
12,703,220 | ||||||
Ohio (1.8%) | ||||||
3,165,000 | Columbus Municipal Airport Authority Revenue, Port Columbus Improvement, Series B, 5.00%, 1/1/16, Callable 1/1/08 @ 101, AMBAC | 3,238,713 | ||||
1,000,000 | Hamilton County Sales Tax Revenue, Series B, | 1,047,950 | ||||
1,000,000 | Ohio State Building Authority, Adult Correction Facility Revenue, Series A, | 1,071,190 | ||||
5,357,853 | ||||||
Oregon (2.9%) | ||||||
3,100,000 | Clackamas Community College District GO, 5.25%, 6/15/16, Callable 6/15/11 @ 100, FGIC | 3,280,916 | ||||
5,000,000 | Portland Sewer System Revenue, Series A, 5.75%, 8/1/18, Callable 8/1/10 @ 100, FGIC | 5,363,950 | ||||
8,644,866 | ||||||
Tennessee (0.6%) | ||||||
1,600,000 | Shelby County GO, Series B, 5.25%, 8/1/17, Callable | 1,638,944 | ||||
Shares or Principal Amount | Security | Value | ||||
Municipal Bonds, continued | ||||||
Texas (3.2%) | ||||||
$ | 2,395,000 | Barbers Hill Independent School District GO, 5.00%, 2/15/24, Callable 2/15/15 @ 100, | $ | 2,479,041 | ||
2,345,000 | Grapevine GO, Series A, | 2,427,286 | ||||
2,000,000 | Houston Independent School District GO, Series A, | 2,077,360 | ||||
1,365,000 | New Braunfels GO, | 1,443,583 | ||||
1,045,000 | Upper Trinity Reginal Water District, 5.00%, 8/1/20, Callable 8/1/15 @ 100, AMBAC | 1,095,902 | ||||
9,523,172 | ||||||
Washington (5.2%) | ||||||
3,475,000 | Douglas County School District No. 206 Eastmont GO, | 3,610,525 | ||||
2,000,000 | Port Seattle Washington Revenue, 5.00%, 2/1/25, Callable | 2,065,640 | ||||
1,125,000 | Skagit County Public Hospital District GO, Series B, | 1,213,740 | ||||
1,000,000 | Snohomish County GO, | 1,060,740 | ||||
2,880,000 | Snohomish County Limited Tax GO, 5.25%, 12/1/12, Callable 12/1/11 @ 100, MBIA | 3,053,866 | ||||
4,000,000 | Washington State GO, Series A, 5.625%, 7/1/19, Callable | 4,231,560 | ||||
15,236,071 | ||||||
Wisconsin (0.4%) | ||||||
1,000,000 | Milwaukee Sewage Revenue, Series S4, 5.00%, 6/1/18, Callable 6/1/13 @ 100, FGIC | 1,042,780 | ||||
Total Municipal Bonds (Cost $240,419,302) | 251,562,592 | |||||
Investment Company (0.5%) | ||||||
1,594,747 | Dreyfus Tax Exempt Cash Management Fund, Institutional Shares | 1,594,747 | ||||
Total Investment Company (Cost $1,594,747) | 1,594,747 | |||||
| Total Investments (Cost $279,665,830) (a)—99.2% | 293,210,560 | ||||
Other assets in excess of liabilities—0.8% | 2,510,560 | |||||
Net Assets—100.0% | $ | 295,721,120 | ||||
See notes to financial statements.
68
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
(a) | Represents cost for financial reporting and federal income tax purposes. Gross unrealized appreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 13,598,011 | ||
Unrealized depreciation | (53,281 | ) | ||
Net unrealized appreciation | $ | 13,544,730 | ||
(b) | Rate represents the effective yield at purchase. |
AMBAC—Insured by AMBAC Indemnity Corporation
FGIC—Insured by the Financial Guaranty Insurance Corporation
FSA—Insured by Financial Security Assurance
GO—General Obligation
MBIA—Insured by Municipal Bond Insurance Association
PSF-GTD—Insured by Permanent School Funding Guarantee
XLCA—Insured by XL Capital Assurance
RADIAN—Insured by Radian
See notes to financial statements.
69
PACIFIC CAPITAL FUNDS
High Grade Short Intermediate Fixed Income Fund
Schedule of Portfolio Investments
July 31, 2006
Principal Amount | Security | Value | ||||
U.S. Government Agencies (89.7%) | ||||||
Federal Farm Credit Bank (10.5%) | ||||||
$ | 10,000 | 5.12%, 8/1/06 (b) | $ | 9,999 | ||
6,000 | 5.32%, 10/16/06 (b) | 5,934 | ||||
250,000 | 6.30%, 8/8/07 | 252,293 | ||||
200,000 | 6.52%, 9/24/07 | 202,566 | ||||
130,000 | 3.61%, 4/15/08 (d) | 126,518 | ||||
610,000 | 3.50%, 7/28/08 | 590,235 | ||||
200,000 | 3.375%, 3/16/09 | 191,125 | ||||
1,000,000 | 4.125%, 7/17/09 | 971,187 | ||||
2,415,000 | 4.25%, 2/22/10, Callable | 2,335,657 | ||||
1,000,000 | 4.70%, 8/11/10 (d) | 975,480 | ||||
400,000 | 5.45%, 11/2/10 (d) | 396,771 | ||||
500,000 | 5.50%, 1/3/11 (d) | 496,182 | ||||
6,553,947 | ||||||
Federal Home Loan Bank (79.2%) | ||||||
359,000 | 5.05%, 8/1/06 (b) | 358,950 | ||||
65,000 | 4.61%, 11/6/06 | 64,838 | ||||
145,000 | 4.875%, 11/15/06 | 144,725 | ||||
1,500,000 | 6.79%, 2/5/07 | 1,509,879 | ||||
890,000 | 5.00%, 3/8/07 | 887,605 | ||||
365,000 | 6.995%, 4/2/07 | 368,654 | ||||
250,000 | 4.00%, 4/18/07, Callable | 247,510 | ||||
500,000 | 4.875%, 5/15/07 | 497,900 | ||||
1,500,000 | 7.625%, 5/15/07 | 1,525,073 | ||||
210,000 | 7.325%, 5/30/07 | 213,208 | ||||
50,000 | 2.60%, 6/4/07 (c) | 48,859 | ||||
255,000 | 6.50%, 8/15/07 | 257,894 | ||||
925,000 | 5.00%, 1/28/08 | 919,838 | ||||
254,167 | 3.75%, 2/6/08 (c) | 248,522 | ||||
1,000,000 | 4.625%, 4/14/08 (c) | 988,694 | ||||
250,000 | 3.50%, 4/15/08 | 242,864 | ||||
1,000,000 | 4.25%, 4/21/08, Callable | 982,527 | ||||
400,000 | 3.625%, 4/23/08, (c) | 389,000 | ||||
1,000,000 | 6.185%, 5/6/08 | 1,015,327 | ||||
275,000 | 5.05%, 5/28/08, Callable | 273,354 | ||||
1,500,000 | 4.57%, 10/17/08, (c) | 1,477,623 | ||||
100,000 | 4.00%, 2/20/09, Callable | 97,119 | ||||
275,000 | 5.25%, 2/27/09, Callable | 273,512 | ||||
1,000,000 | 5.25%, 3/2/09, Callable | 996,714 | ||||
5,000,000 | 5.50%, 5/1/09, Callable | 4,988,624 | ||||
100,000 | 4.00%, 10/30/09, Callable | 96,452 | ||||
6,000,000 | 5.00%, 11/3/09, Callable | 5,961,263 | ||||
3,000,000 | 4.375%, 2/2/10, Callable | 2,916,795 |
Principal Amount | Security | Value | ||||
U.S. Government Agencies, continued | ||||||
Federal Home Loan Bank, continued | ||||||
$ | 200,000 | 4.20%, 5/7/10, Callable | $ | 192,971 | ||
200,000 | 4.00%, 7/30/10, Callable | 191,299 | ||||
160,000 | 4.22%, 7/30/10, Callable | 154,139 | ||||
200,000 | 4.06%, 8/6/10, Callable | 191,631 | ||||
1,750,000 | 4.125%, 8/13/10 | 1,683,078 | ||||
4,500,000 | 4.375%, 9/17/10 | 4,367,619 | ||||
1,000,000 | 5.125%, 11/1/10, Callable | 990,222 | ||||
1,750,000 | 4.75%, 12/10/10 | 1,716,843 | ||||
1,000,000 | 4.75%, 12/30/10 | 975,345 | ||||
3,000,000 | 4.625%, 2/18/11 | 2,931,606 | ||||
1,000,000 | 5.625%, 2/28/11, Callable | 996,004 | ||||
3,200,000 | 4.875%, 3/11/11 | 3,154,016 | ||||
3,700,000 | 5.25%, 6/10/11 | 3,700,133 | ||||
49,238,229 | ||||||
| Total U.S. Government Agencies (Cost $56,282,365) | 55,792,176 | ||||
| U.S. Government Agency Mortgage- Backed Obligations (6.1%) | |||||
Fannie Mae (3.2%) | ||||||
697,721 | 5.00%, 5/1/19 | 678,967 | ||||
1,328,738 | 5.50%, 8/1/19 | 1,317,112 | ||||
1,996,079 | ||||||
Freddie Mac (2.9%) | ||||||
715,920 | 5.00%, 1/1/19 | 696,278 | ||||
1,096,343 | 6.00%, 6/1/21 | 1,103,538 | ||||
1,799,816 | ||||||
| Total U.S. Government Agency Mortgage- Backed Obligations (Cost $3,786,240) | 3,795,895 | ||||
U.S. Treasury Notes (2.9%) | ||||||
20,000 | 2.75%, 8/15/07 | 19,536 | ||||
14,000 | 3.00%, 2/15/08 | 13,588 | ||||
65,000 | 2.625%, 5/15/08 | 62,415 | ||||
75,000 | 3.25%, 8/15/08 | 72,563 | ||||
67,000 | 3.125%, 10/15/08 | 64,480 | ||||
175,000 | 3.00%, 2/15/09 | 167,023 | ||||
300,000 | 3.875%, 5/15/10 | 289,465 | ||||
393,000 | 3.625%, 6/15/10 | 375,652 | ||||
750,000 | 4.375%, 12/15/10 | 734,619 | ||||
Total U.S. Treasury Notes (Cost $1,853,815) | 1,799,341 | |||||
| Total Investments (Cost $61,922,420) (a)—98.7% | 61,387,412 | ||||
Other assets in excess of liabilities—1.3% | 805,470 | |||||
Net Assets—100.0% | $ | 62,192,882 | ||||
See notes to financial statements.
70
PACIFIC CAPITAL FUNDS
High Grade Short Intermediate Fixed Income Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
(a) | Represents cost for financial reporting and federal income tax purposes. Gross unrealized depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 49,408 | ||
Unrealized depreciation | (584,416 | ) | ||
Net unrealized depreciation | $ | (535,008 | ) | |
(b) Rate represents the effective yield at purchase.
(c) Security continuously callable with five days notice.
(d) Security continuously callable with seven days notice.
See notes to financial statements.
71
PACIFIC CAPITAL FUNDS
Tax-Free Short Intermediate Securities Fund
Schedule of Portfolio Investments
July 31, 2006
Shares or Principal Amount | Security | Value | ||||
Alternative Minimum Tax Paper (7.5%) | ||||||
Hawaii (6.0%) | ||||||
$ | 610,000 | Hawaii Airport System Revenue, Second Series, 6.90%, 7/1/12, Escrowed to Maturity, MBIA | $ | 671,140 | ||
1,100,000 | Hawaii State Harbor System Revenue, Series A, | 1,100,341 | ||||
2,105,000 | Hawaii State Harbor System Revenue, Series A, | 2,121,546 | ||||
3,893,027 | ||||||
Utah (1.5%) | ||||||
1,000,000 | Utah State Board of Regents Student Loan Revenue, Series N, 5.90%, 11/1/07, Callable | 1,015,450 | ||||
| Total Alternative Minimum Tax Paper (Cost $4,900,817) | 4,908,477 | ||||
Municipal Bonds (83.5%) | ||||||
Hawaii (47.9%) | ||||||
1,595,000 | Hawaii County GO, Series A, 5.00%, 7/15/08, CIFG | 1,632,419 | ||||
1,000,000 | Hawaii County GO, Series A, 5.25%, 5/15/11, Callable: | 1,046,360 | ||||
1,065,000 | Hawaii County GO, Series A, 5.25%, 5/15/12, Callable | 1,113,798 | ||||
1,000,000 | Hawaii County GO, Series A, 5.375%, 5/15/13, Callable | 1,048,820 | ||||
1,000,000 | Hawaii State GO, Series BW, | 1,064,750 | ||||
1,000,000 | Hawaii State GO, Series CN, | 1,037,920 | ||||
1,150,000 | Hawaii State GO, Series CP, 5.50%, 10/1/07, FGIC | 1,172,724 | ||||
1,000,000 | Hawaii State GO, Series CR, 5.25%, 4/1/13, Prerefunded 4/1/08 @ 101, MBIA | 1,033,940 | ||||
1,000,000 | Hawaii State GO, Series CT, | 1,015,880 | ||||
1,000,000 | Hawaii State GO, Series CU, | 1,073,940 | ||||
1,250,000 | Hawaii State GO, Series CV, | 1,291,175 | ||||
1,000,000 | Hawaii State GO, Series CZ, | 1,072,260 | ||||
5,000,000 | Hawaii State GO, Series DG, | 5,167,899 | ||||
1,000,000 | Hawaii State Harbor System Revenue, Series A, 4.50%, 7/1/08, AMBAC | 1,013,310 | ||||
750,000 | Hawaii State Highway Revenue, 4.85%, 7/1/09, FSA | 772,110 |
Shares or Principal Amount | Security | Value | ||||
Municipal Bonds, continued | ||||||
Hawaii, continued | ||||||
$ | 1,055,000 | Hawaii State Housing & Community Development Revenue, Series A, 3.70%, 7/1/13, FSA | $ | 1,024,099 | ||
1,200,000 | Hawaii State Housing Finance & Development Corp., Single Family Mortgage Revenue, Series B, 4.80%, 7/1/07, FNMA | 1,204,728 | ||||
1,150,000 | Honolulu City & County Waste Water System Revenue, | 1,188,617 | ||||
3,000,000 | Honolulu City & County Waste Water System Revenue, 5.25%, 7/1/13, Callable 7/1/09 @ 101 | 3,141,360 | ||||
1,000,000 | Honolulu City & County Waste Water System Revenue, 5.25%, 7/1/15, Callable 7/1/09 @ 101, FGIC | 1,045,990 | ||||
1,000,000 | Honolulu City & County Waste Water System Revenue, Series SR, 5.00%, 7/1/07, AMBAC | 1,010,970 | ||||
1,000,000 | Honolulu City and County GO, Series B, 5.125%, 7/1/16, Prerefunded 7/1/09 @ 101 | 1,046,810 | ||||
1,090,000 | University of Hawaii System Revenue, Series A, 5.50%, 7/15/16, Callable 7/15/12 @ 100, FGIC | 1,178,781 | ||||
31,398,660 | ||||||
Iowa (1.9%) | ||||||
1,195,000 | Des Moines, Iowa GO, Series B, 5.00%, 6/1/12, Callable | 1,246,015 | ||||
Maine (4.8%) | ||||||
3,035,000 | Maine State Turnpike Authority Turnpike Revenue, 5.375%, 7/1/14, Callable 7/1/08 @ 101, MBIA | 3,148,175 | ||||
Michigan (4.0%) | ||||||
1,500,000 | Michigan State Building Authority Revenue, Series II, 5.00%, 10/15/12, Prerefunded | 1,536,960 | ||||
1,000,000 | Michigan State Certificate of Participation, 5.50%, 6/1/27, Prerefunded 6/1/10 @ 100, AMBAC | 1,061,070 | ||||
2,598,030 | ||||||
Minnesota (4.0%) | ||||||
2,500,000 | Minnesota State GO, 5.00%, 8/1/16, Callable 8/1/12 @ 100 | 2,634,800 | ||||
Nevada (2.0%) | ||||||
1,280,000 | Clark County Nevada Airport Revenue, 5.25%, 7/1/12, Callable 7/1/08 @ 101, MBIA | 1,326,246 | ||||
See notes to financial statements.
72
PACIFIC CAPITAL FUNDS
Tax-Free Short Intermediate Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2006
Shares or Principal Amount | Security | Value | ||||
Municipal Bonds, continued | ||||||
New Jersey (2.2%) | ||||||
$ | 1,000,000 | New Jersey State Certificate of Participation, 5.00%, 6/15/09, Callable 8/7/06 @ 100 | $ | 1,028,970 | ||
395,000 | New Jersey State Transportation Corp., Capital Grant Revenue Anticipation Notes, Series B, 5.50%, 2/1/11, AMBAC | 395,308 | ||||
1,424,278 | ||||||
New York (1.6%) | ||||||
1,000,000 | New York State Thruway Authority Revenue, Highway & Bridge Trust Fund, Series B, | 1,072,130 | ||||
Pennsylvania (3.8%) | ||||||
1,370,000 | Chester Upland School District GO, 4.40%, 5/15/15, State Aid Withholding | 1,369,918 | ||||
1,030,000 | Philadelphia Water & Wastewater Revenue, Series B, | 1,110,453 | ||||
2,480,371 | ||||||
Puerto Rico (5.2%) | ||||||
1,200,000 | Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue, 6.25%, 7/1/13, MBIA | 1,368,576 | ||||
1,450,000 | Puerto Rico Commonwealth GO, 5.25%, 7/1/09, MBIA | 1,512,655 | ||||
500,000 | Puerto Rico Commonwealth Highway & Transportation Authority Revenue, Series D, 5.75%, 7/1/41, Prerefunded | 551,725 | ||||
3,432,956 | ||||||
Shares or Principal Amount | Security | Value | ||||
Municipal Bonds, continued | ||||||
Utah (3.1%) | ||||||
$ | 1,000,000 | Intermountain Power Agency Revenue, Series A, 5.25%, 7/1/10, Callable 7/1/08 @ 101, MBIA | $ | 1,036,130 | ||
1,000,000 | Utah State GO, Series F, 5.00%, 7/1/12, Prerefunded | 1,011,960 | ||||
2,048,090 | ||||||
Virginia (3.0%) | ||||||
2,000,000 | Lynchburg, Virginia GO, 3.875%, 7/15/08, Callable | �� | 2,000,240 | |||
Total Municipal Bonds (Cost $54,655,726) | 54,809,991 | |||||
U.S. Government Agencies (3.0%) | ||||||
Federal Home Loan Bank (3.0%) | ||||||
2,000,000 | 4.00%, 7/2/07, Callable | 1,975,280 | ||||
| Total U.S. Government Agencies (Cost $1,990,025) | 1,975,280 | ||||
Investment Company (5.3%) | ||||||
3,000,000 | Dreyfus Tax Exempt Cash Management Fund, Institutional Shares | 3,000,000 | ||||
480,006 | Goldman Sachs Financial Square Tax-Free Money Market Fund, Institutional Shares | 480,006 | ||||
Total Investment Company (Cost $3,480,006) | 3,480,006 | |||||
| Total Investments (Cost $65,026,574) (a)—99.3% | 65,173,754 | ||||
Other assets in excess of liabilities— 0.7% | 443,990 | |||||
Net Assets—100.0% | $ | 65,617,744 | ||||
(a) | Represents cost for financial reporting and federal income tax purposes. Gross unrealized appreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 244,423 | ||
Unrealized depreciation | (97,243 | ) | ||
Net unrealized appreciation | $ | 147,180 | ||
AMBAC—AMBAC Indemnity Corporation
FGIC—Insured by the Financial Guaranty Insurance Corporation
FSA—Insured by Financial Security Assurance
FSA-CR—FSA Custodial Receipts
FNMA—Insured by Federal National Mortgage Association Collateral
GO—General Obligation
MBIA—Insured by Municipal Bond Insurance Association
CIFG—Insured by IXIS Financial Guaranty
See notes to financial statements.
73
PACIFIC CAPITAL FUNDS
U.S. Government Short Fixed Income Fund
Schedule of Portfolio Investments
July 31, 2006
Principal Amount | Security | Value | ||||
U.S. Government Agencies (99.5%) | ||||||
Federal Farm Credit Bank (1.9%) | ||||||
$ | 7,000 | 5.32%, 10/16/06 (b) | $ | 6,923 | ||
304,000 | 2.74%, 2/2/07, | 299,945 | ||||
150,000 | 5.08%, 4/3/07 (d) | 149,612 | ||||
1,480,000 | 4.60%, 8/8/08, | 1,459,550 | ||||
1,916,030 | ||||||
Federal Home Loan Bank (97.6%) | ||||||
1,574,000 | 5.05%, 8/1/06 (b) | 1,573,779 | ||||
385,000 | 2.55%, 8/14/06 | 384,602 | ||||
170,000 | 2.70%, 8/21/06 | 169,746 | ||||
95,000 | 2.60%, 9/1/06 | 94,773 | ||||
600,000 | 3.125%, 9/15/06 | 598,275 | ||||
380,000 | 2.33%, 10/16/06 (c) | 377,502 | ||||
750,000 | 3.03%, 10/19/06 (c) | 745,973 | ||||
1,000,000 | 3.875%, 12/1/06 | 994,614 | ||||
550,000 | 2.72%, 12/8/06 | 544,766 | ||||
250,000 | 2.75%, 12/15/06 | 247,500 | ||||
665,000 | 3.375%, 12/15/06 (c) | 659,985 | ||||
925,000 | 2.33%, 12/29/06 | 913,298 | ||||
750,000 | 2.50%, 12/29/06 (c) | 741,010 | ||||
690,000 | 2.875%, 12/29/06 | 682,721 | ||||
500,000 | 2.30%, 1/12/07 | 493,077 | ||||
200,000 | 3.50%, 1/18/07 | 198,209 | ||||
860,000 | 2.65%, 1/22/07 | 848,757 | ||||
500,000 | 2.74%, 2/2/07 (c) | 493,330 | ||||
785,000 | 2.80%, 2/9/07 (c) | 774,374 | ||||
220,000 | 2.80%, 2/9/07 | 217,022 | ||||
335,000 | 2.625%, 2/16/07 | 329,995 | ||||
7,750,000 | 5.125%, 2/20/07 | 7,732,888 | ||||
5,530,000 | 5.00%, 3/2/07 (c) | 5,512,022 | ||||
2,000,000 | 5.05%, 3/28/07 (c) | 1,994,750 | ||||
500,000 | 2.65%, 4/5/07 (c) | 490,838 | ||||
675,000 | 2.75%, 4/27/07 (c) | 661,938 | ||||
300,000 | 3.70%, 5/10/07 (c) | 296,114 | ||||
200,000 | 3.70%, 8/10/07 | 196,728 | ||||
525,000 | 4.30%, 10/4/07 | 518,786 | ||||
90,000 | 6.20%, 10/10/07 | 90,391 |
Principal Amount | Security | Value | ||||
U.S. Government Agencies, continued | ||||||
Federal Home Loan Bank, continued | ||||||
$ | 100,000 | 3.02%, 11/6/07 (c) | $ | 97,219 | ||
755,000 | 3.385%, 11/6/07 (c) | 737,248 | ||||
2,000,000 | 5.00%, 11/23/07 (c) | 1,989,820 | ||||
4,000,000 | 5.05%, 12/14/07 (c) | 3,981,140 | ||||
3,950,000 | 5.00%, 12/17/07 (c) | 3,928,994 | ||||
160,000 | 3.02%, 12/28/07 (c) | 155,094 | ||||
6,375,000 | 5.00%, 1/28/08 (c) | 6,339,421 | ||||
485,000 | 4.00%, 2/22/08 (c) | 475,728 | ||||
1,500,000 | 4.61%, 2/28/08 (c) | 1,483,964 | ||||
1,000,000 | 5.10%, 3/6/08, | 997,189 | ||||
470,000 | 3.70%, 3/12/08 | 458,619 | ||||
1,185,000 | 4.25%, 4/21/08 (c) | 1,164,295 | ||||
5,060,000 | 5.50%, 5/30/08, | 5,056,266 | ||||
335,000 | 4.00%, 7/14/08 (c) | 327,327 | ||||
200,000 | 4.15%, 8/11/08 (c) | 195,826 | ||||
8,875,000 | 5.00%, 1/23/09, | 8,812,955 | ||||
1,000,000 | 5.00%, 3/2/09 (c)(e) | 994,615 | ||||
4,000,000 | 5.25%, 3/2/09, | 3,986,856 | ||||
7,650,000 | 5.50%, 5/4/09 (c) | 7,632,635 | ||||
8,875,000 | 5.625%, 5/15/09 (c) | 8,874,236 | ||||
11,450,000 | 5.25%, 6/10/11 | 11,450,411 | ||||
98,717,621 | ||||||
| Total U.S. Government Agencies (Cost $100,836,762) | 100,633,651 | ||||
U.S. Treasury Notes (0.4%) | ||||||
63,000 | 2.25%, 2/15/07 | 62,045 | ||||
370,000 | 3.125%, 5/15/07 | 364,378 | ||||
Total U.S. Treasury Notes (Cost $431,973) | 426,423 | |||||
| Total Investments (Cost $101,268,735) (a)—99.9% | 101,060,074 | ||||
Other assets in excess of liabilities—0.1% | 150,133 | |||||
Net Assets—100.0% | $ | 101,210,207 | ||||
(a) | Represents cost for financial reporting and federal income tax purposes. Gross unrealized depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 111,548 | ||
Unrealized depreciation | (320,209 | ) | ||
Net unrealized depreciation | $ | (208,661 | ) | |
(b) | Rate represents the effective yield at purchase. |
(c) | Security continuously callable with five days notice. |
(d) | Security continuously callable with seven days notice. |
(e) | This security has a rate that periodically changes. Rate presented represents rate in effect at July 31, 2006. |
See notes to financial statements.
74
PACIFIC CAPITAL FUNDS
Notes to Financial Statements
July 31, 2006
1. | Organization |
Pacific Capital Funds (the “Trust”) was organized on October 30, 1992, and is registered under the Investment Company Act of 1940, as amended (“the 1940 Act”), as an open-end management investment company established as a Massachusetts business trust. The Trust currently consists of the following investment portfolios (individually, a “Fund” and collectively, the “Funds”): New Asia Growth Fund, International Stock Fund, Small Cap Fund, Mid-Cap Fund, Growth Stock Fund, Growth and Income Fund, Value Fund, High Grade Core Fixed Income Fund (formerly Diversified Fixed Income Fund), Tax-Free Securities Fund, High Grade Short Intermediate Fixed Income Fund (formerly Short Intermediate U.S. Government Securities Fund), Tax-Free Short Intermediate Securities Fund and U.S. Government Short Fixed Income Fund (formerly Ultra Short Government Fund). The Trust is authorized to issue an unlimited number of shares without par value in four classes of shares for each Fund: Class A, Class B, Class C and Class Y. The sale of Class B Shares has been suspended since June 1, 2003 (except for reinvestment of dividends and exchanges of Class B Shares between Funds).
The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. Each class of shares has identical rights and privileges except with respect to the fees paid under distribution (12b-1) fees, voting rights on matters affecting a single class of shares, sales charges and exchange privileges. The A Shares of the New Asia Growth Fund, the International Stock Fund, the Small Cap Fund, the Mid-Cap Fund, the Growth Stock Fund, the Growth and Income Fund, and the Value Fund have a maximum sales charge on purchases of 5.25% of the purchase price; the A Shares for the High Grade Core Fixed Income Fund and the Tax-Free Securities Fund have a maximum sales charge on purchases of 4.00% of the purchase price; and the A Shares for the High Grade Short Intermediate Fixed Income Fund, the Tax-Free Short Intermediate Securities Fund, and the U.S. Government Short Fixed Income Fund have a maximum sales charge on purchases of 2.25% of the purchase price. The B Shares have a contingent deferred sales charge (“CDSC”) of 5.00% as a percentage of original purchase price or sale price (whichever is less) if redeemed before the sixth anniversary of purchase, declining from 5.00% within the first year to 0% after the sixth year. The C Shares have a CDSC of 1.00% as a percentage of the original purchase price if redeemed within twelve months of purchase.
Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust may enter into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust.
2. | Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with United States generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
Securities Valuation:
Investments in securities, the principal market for which is a securities exchange or an over-the-counter market, are valued at their latest available sale price (except for those securities that are traded on NASDAQ, which are valued at the NASDAQ official closing price) or in the absence of such a price, by reference to the latest available mean of the bid and asked quotations in the principal market in which such securities are normally traded. Investments in securities in which the principal market is not an exchange or an over-the-counter market are valued using an independent pricing service approved by the Board of Trustees. Such prices reflect fair values, which may be established through the use of electronic and matrix techniques. Short-term obligations that mature in 60 days or less are valued at amortized cost or original cost
Continued
75
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2006
plus interest, which approximates fair value. Investments in open-end investment companies are valued at their respective net asset values as reported by such companies. The differences between cost and fair values of investments are reflected as either unrealized appreciation or depreciation.
In cases where market prices for portfolio securities are not readily available, a Pricing Committee established and appointed by the Trust’s Board of Trustees determines in good faith, subject to Trust procedures, the fair value of portfolio securities held by a Fund. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Funds’ net asset value is calculated, such securities may be valued at fair value in accordance with procedures adopted by the Board of Trustees. Management identifies possible fluctuations in international securities by monitoring the increase or decrease in the value of a designated benchmark index. In the event of an increase or decrease greater than predetermined levels, the New Asia Growth Fund and the International Stock Fund may use a systematic valuation model provided by an independent third party to fair value their international equity securities.
Foreign Currency Transactions:
The accounting records of the Trust are maintained in U.S. dollars. Investment securities and other assets and liabilities of the New Asia Growth Fund and International Stock Fund denominated in a foreign currency are translated into U.S. dollars at current exchange rates. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the date of the transactions.
The New Asia Growth Fund and International Stock Fund do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies.
Reported net realized foreign currency exchange gains or losses arise from sales and maturities of portfolio securities, sales of foreign currencies, currency exchange fluctuations between the trade and settlement dates of securities transactions, and the differences between the amounts of assets and liabilities recorded and the U.S. dollar equivalents of the amounts actually received or paid. Net unrealized foreign currency appreciation or depreciation arises from changes in the values of assets and liabilities, including investments in securities, resulting from changes in currency exchange rates.
Foreign Currency Contracts:
The New Asia Growth Fund and International Stock Fund may enter into foreign currency exchange contracts to convert U.S. dollars to and from various foreign currencies. A foreign currency exchange contract is an obligation by a Fund to purchase or sell a specific foreign currency at a future date at a price (in U.S. dollars) set at the time of the contract. The Funds do not engage in “cross-currency” foreign exchange contracts (i.e., contracts to purchase or sell one foreign currency in exchange for another foreign currency). The Funds’ foreign currency contracts might be considered spot (typically a contract of one week or less) contracts or forward (contract length over one week) contracts. Spot contracts are entered into for purposes of hedging against foreign currency fluctuations relating to a specific portfolio transaction, such as the delay between a security transaction trade date and settlement date. Forward contracts are entered into for purposes of hedging portfolio holdings or concentrations of such holdings. These Funds enter into foreign currency exchange contracts solely for spot or forward hedging purposes, and not for speculative purposes (i.e., the Funds do not enter into such contracts for the purpose of earning foreign currency gains). Foreign currency exchange contracts are adjusted daily by the prevailing spot or forward rate of the underlying currency, and any appreciation or depreciation is recorded for financial statement purposes as unrealized until the contract settlement date, at which time the Fund records realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. A Fund could be exposed to risk if a counterparty is unable to meet the terms of a forward foreign exchange currency contract or if the value of the foreign currency changes unfavorably.
Continued
76
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2006
Restricted Securities:
A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act”) or pursuant to the resale limitations provided by Rule 144 under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. Whether a restricted security is illiquid is determined pursuant to guidelines established by the Board of Trustees. Not all restricted securities are considered illiquid. At July 31, 2006, the International Stock Fund, Small Cap Fund and High Grade Core Fixed Income Fund held restricted securities representing 0.5%, 2.0% and 1.5% of net assets, respectively. The restricted securities held as of July 31, 2006 are identified below:
Issue Description | Acquisition Date | Cost ($) | Shares or Principal Amount ($) | Value ($) | ||||
International Stock Fund: | ||||||||
Evraz Group SA, GDR | * | 1,103,281 | 43,878 | 1,053,072 | ||||
Small Cap Fund: | ||||||||
Castlepoint Holdings Ltd. | 3/27/06 | 2,674,000 | 267,400 | 2,941,400 | ||||
DiamondRock Hospitality Co. | 6/29/04 | 1,424,000 | 142,400 | 2,288,368 | ||||
JER Investors Trust, Inc. | ** | 1,150,500 | 76,700 | 1,188,850 | ||||
Quintana Maritime Ltd. (a) | 5/10/06 | 2,334,375 | 24,900 | 2,334,375 | ||||
High Grade Core Fixed Income Fund: | ||||||||
FGIC Corp., 6.00%, 1/15/34 | *** | 1,105,698 | 1,025,000 | 984,497 | ||||
SABMiller PLC, 6.20%, 7/1/11 | 6/27/06 | 2,997,870 | 3,000,000 | 3,053,706 | ||||
Viacom, Inc., 5.75%, 4/30/11 | 7/26/06 | 490,805 | 500,000 | 491,184 |
(a) | Determined to be illiquid based upon procedures approved by the Board of Trustees and represents 0.54% of net assets. |
* | Purchased on various dates beginning 4/25/06. |
** | Purchased on various dates beginning 8/29/05. |
*** | 365,000 shares of this security were acquired on 5/31/05 and 660,000 shares were acquired on 7/15/05. |
Securities Transactions and Related Income:
During the period, security transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on the trade date on the last business day of the reporting period. Interest income is recognized on the accrual basis and includes, where applicable, the pro rata amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
Allocations:
Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses, such as distribution fees, if any, are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets or another appropriate basis.
Income, expenses (other than expenses attributable to a specific share class) and realized/unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets or another appropriate basis.
Continued
77
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2006
Distributions to Shareholders:
Dividends from net investment income are declared daily and paid monthly for the High Grade Core Fixed Income Fund, Tax-Free Securities Fund, High Grade Short Intermediate Fixed Income Fund, Tax-Free Short Intermediate Securities Fund and U.S. Government Short Fixed Income Fund. Dividends from net investment income are declared and paid quarterly for the New Asia Growth Fund, International Stock Fund, Small Cap Fund, Mid-Cap Fund, Growth Stock Fund, Growth and Income Fund and Value Fund. Distributable net realized capital gains, if any, are declared and distributed at least annually for all the Funds. Some of the Funds utilize equalization accounting for tax purposes and designate earnings and profits, including realized gains distributed to shareholders on redemption of shares, as a part of the dividends paid deduction for income tax purposes.
Redemption Fees:
The New Asia Growth Fund and International Stock Fund may impose a redemption fee. This fee can be assessed on redemptions and exchanges of Fund shares within 90 days from the date the Fund shares were acquired. For financial statement purposes, these amounts are included on the Statements of Changes in Net Assets as an addition to paid-in capital. Fees for the Funds for the years ended July 31, 2006 and July 31, 2005 were as follows:
2006 ($) | 2005 ($) | |||
New Asia Growth Fund | 1,254 | 393 | ||
International Stock Fund | 594 | 1,414 |
3. | Purchases and Sales of Securities |
Purchases and sales of securities (excluding securities maturing less than one year from acquisition and U.S. Government securities) for the year ended July 31, 2006 were as follows:
Purchases ($) | Sales ($) | |||
New Asia Growth Fund | 57,806,307 | 28,467,808 | ||
International Stock Fund | 138,627,841 | 69,804,761 | ||
Small Cap Fund | 527,209,297 | 350,476,708 | ||
Mid-Cap Fund | 80,478,512 | 88,855,279 | ||
Growth Stock Fund | 381,027,872 | 456,928,955 | ||
Growth and Income Fund | 286,049,093 | 273,068,017 | ||
Value Fund | 226,777,949 | 281,108,287 | ||
High Grade Core Fixed Income Fund | 61,873,696 | 132,563,470 | ||
Tax-Free Securities Fund | 186,096,366 | 211,284,753 | ||
Tax-Free Short Intermediate Securities Fund | 66,800,625 | 65,080,526 |
Purchases and sales of securities of long-term U.S. Government securities for the year ended July 31, 2006 were as follows:
Purchases ($) | Sales ($) | |||
High Grade Core Fixed Income Fund | 190,725,150 | 137,524,267 | ||
High Grade Short Intermediate Fixed Income Fund | 54,802,227 | 77,765,539 | ||
Tax-Free Short Intermediate Securities Fund | 3,963,080 | 7,256,281 | ||
U.S. Government Short Fixed Income Fund | 98,210,635 | 128,607,126 |
Continued
78
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2006
4. | Transactions with Affiliates |
Investment advisory services are provided to the Trust by the Asset Management Group of Bank of Hawaii (the “Adviser”). Under terms of an advisory agreement, the Funds are charged the following annual fees based upon average daily net assets which are computed daily and paid monthly:
Maximum Annual Advisory Fee (%) | Net Annual Fees Paid (%) | |||
New Asia Growth Fund | 0.40 | 0.40 | ||
International Stock Fund | 0.45 | 0.35 | ||
Small Cap Fund* | 0.50 | 0.39 | ||
Mid-Cap Fund | 0.60 | 0.30 | ||
Growth Stock Fund | 0.80 | 0.80 | ||
Growth and Income Fund | 0.80 | 0.80 | ||
Value Fund | 0.80 | 0.80 | ||
High Grade Core Fixed Income Fund | 0.60 | 0.45 | ||
Tax-Free Securities Fund | 0.60 | 0.45 | ||
High Grade Short Intermediate Fixed Income Fund | 0.50 | 0.19 | ||
Tax-Free Short Intermediate Securities Fund | 0.50 | 0.40 | ||
U.S. Government Short Fixed Income Fund | 0.40 | 0.09 |
* | The fee is reduced by any amount paid to the Sub-Advisors in excess of 0.60% so that the total advisory and sub-advisory fees will not exceed 1.10%. |
The Adviser has voluntarily agreed to waive a portion of its fees. Fee waivers are voluntary and may be terminated at any time.
The following Funds have entered into Sub-Advisory contracts as listed below. Under the terms of each Sub-Advisory agreement, the Funds are charged the following annual fees by the Sub-Advisor based upon average daily net assets which are computed daily and paid monthly:
Fund | Sub-Advisor | Annual Fees Paid | ||
New Asia Growth Fund | First State Investments International Ltd. 1 | 0.50% | ||
International Stock Fund | Hansberger Global Investors, Inc. | 0.60% of the first $75 million; 0.35% in excess of $75 million | ||
Small Cap Fund | Nicholas-Applegate Capital Management, small cap value style Nicholas-Applegate Capital Management, systematic small cap style | 0.60% of the first $50 million; 0.55% on assets in excess of $50 million 2 0.70% 3 | ||
Wellington Management Company, LLP | 0.70% of the first $150 million; 0.65% on assets in excess of $150 million 4 | |||
Mid-Cap Fund | Bankoh Investment Partners, LLC | 0.20% |
1 | Prior to June 29, 2006, the Sub-Advisor was First State (Hong Kong) LLC, an affiliate of the fund’s current sub-advisor with a substantially similar management style. First State (Hong Kong) LLC received the same fees listed in the table. |
2 | On assets managed by Nicholas-Applegate Capital Management with its small cap value style. |
3 | On assets managed by Nicholas-Applegate Capital Management with its systematic small cap style. |
4 | On assets managed by Wellington Management Company, LLP. |
Bank of Hawaii (“BOH”) acts as Administrator of the Trust effective July 1, 2006 and receives 0.04% of the average daily net assets of the Trust for this service. Prior to July 1, 2006, BISYS Fund Services Ohio, Inc. (“BISYS Ohio”), a wholly owned subsidiary of The BISYS Group Inc., served the Trust as Administrator and received an annual fee of 0.16% of the average daily net assets of each Fund, plus $60,000 for providing additional legal services to the Trust.
Continued
79
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2006
Effective July 1, 2006, BISYS Ohio serves the Trust as Sub-Administrator pursuant to an agreement between BISYS Ohio, the Trust and BOH. BISYS Ohio receives fees from the Trust of 0.05% of the average daily net assets of the Trust and $10,000 annually for providing additional legal services. Prior to July 1, 2006, BOH served as Sub-Administrator to the Trust pursuant to a sub-administration agreement with BISYS Ohio. BISYS Ohio was solely responsible for paying BOH any fees for such services.
In addition, BISYS Ohio provides an employee to serve as Chief Compliance Officer for the Trust and provide certain related services and receives a fee for this service and reimbursement for certain out-of-pocket expenses.
BISYS Ohio also serves the Trust as Fund Accountant and Transfer Agent. Under the terms of the fund accounting and transfer agency agreement, BISYS Ohio is entitled to receive fees and reimbursement for certain out-of-pocket expenses incurred in providing fund accounting and transfer agent services.
BISYS Ohio may voluntarily reduce expenses to assist the Funds in maintaining competitive expense ratios. These voluntary waivers may be terminated at any time and will not be recouped in subsequent years.
BISYS Fund Services Limited Partnership (“BISYS”), also a wholly owned subsidiary of The BISYS Group, Inc., serves the Trust as principal underwriter and distributor. The Trust has adopted for the Class A, Class B and Class C shares of each of the Funds Class A Distribution Plan, Class B Distribution Plan and Class C Distribution Plan (the “Plans”) pursuant to Rule 12b-1 under the 1940 Act. Under the Plans, each Fund pays BISYS a fee which will not exceed on an annual basis, 0.40%, 1.00% and 1.00%, respectively, of the average daily net assets attributable to the Class A, Class B and Class C shares of each Fund. Prior to December 1, 2005, the fee charged on the average daily net assets attributable to the Class A Shares was not to exceed 0.75% on an annual basis. These fees are for payments BISYS makes to banks, including BOH or its affiliates, other institutions and broker/dealers, and for expenses BISYS and any of its affiliates or subsidiaries incur for providing distribution or shareholder service assistance.
The following table shows the amounts received by BISYS on commissions from sales and the amounts re-allowed to affiliated broker dealers of the Funds during the year ended July 31, 2006:
Received ($) | Retained ($) | |||
Class A | 425,246 | 53,103 | ||
Class C | 123,721 | 19,797 |
Certain Officers and Trustees of the Trust are affiliated with Bank of Hawaii, the Adviser, BISYS Ohio or BISYS. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles. Each of the five Non-Interested Trustees receives a fee for their service plus the reimbursement of certain expenses incurred.
The Adviser has entered into a reimbursement agreement with the Funds in which it agrees to reimburse the Funds for fees charged by various intermediaries. The intermediaries, such as broker-dealers, banks, retirement plan administrators or other institutions, make one or more Funds available to their customers in accordance with relevant Intermediary Agreements and provide certain recordkeeping, processing and/or administrative services. This agreement can be terminated by the Adviser with 60 days written notice. The reimbursements made by the Adviser may not be recouped in future periods.
During the year, the Adviser reimbursed the Growth Stock Fund and Value Fund $3,093 and $3,762, respectively, for commissions incurred on a security transaction that was intended to be a transfer of securities between the funds under Rule 17a-7, but was inadvertently traded via a broker. These amounts are included in the line item “Net increase from payments by affiliates” on the Statements of Operations. The impact to both funds was less than $0.005 per share.
Continued
80
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2006
Also during the year, Nicholas-Applegate Capital Management reimbursed the Small Cap Fund $38,757 for losses incurred in the disposal of investments held in violation of the Fund’s investment restrictions. The amount is disclosed on the line item “Net increase from payments by affiliates and net gains (losses) realized on the disposal of investments in violation of restrictions” on the Statements of Operations. The impact to the Fund was less than $0.005 per share.
5. | Risks |
The New Asia Growth Fund and International Stock Fund invest in securities of foreign issuers in various countries. Investing on an international basis involves certain risks not involved in domestic investments, including fluctuations in foreign exchange rates, future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws or restrictions. In addition, with respect to certain foreign countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could effect investments in those countries. Moreover, individual foreign economies may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross national product, rates of inflation, capital reinvestment, resources, self-sufficiency and balance of payments position. Certain foreign investments may also be subject to foreign withholding taxes.
The New Asia Growth Fund’s concentration of investments in securities of issuers located in the Far East Asia region may subject the Fund to the effects of economic and government policies within that region.
The Tax-Free Securities and Tax-Free Short Intermediate Securities Funds’ concentration of investments in securities of issuers located in Hawaii may subject each Fund to the effects of economic and government policies within Hawaii.
6. | Federal Income Tax Information |
It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies as defined in applicable sections of the Internal Revenue Code, and to make distributions from net investment income and from net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Withholding taxes on foreign dividends have been paid or provided for in accordance with applicable country’s tax rules and rates.
The amounts of dividends from net investment income and of distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (i.e. paydown reclasses and foreign currency transactions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification.
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax return to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management is in the process of completing their analysis on whether the adoption of FIN 48 will have an impact to the financial statements.
Continued
81
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2006
The tax character of distributions paid during the year ended July 31, 2006 were as follows (amounts in thousands):
Distributions Paid From | Total Taxable Distributions ($) | Tax Exempt Distributions ($) | Total Distributions Paid ($) | |||||||
Net Investment Income ($) | Net Long-Term Capital Gains ($) | |||||||||
New Asia Growth Fund | 653 | 2,618 | 3,271 | — | 3,271 | |||||
International Stock Fund | 1,786 | — | 1,786 | — | 1,786 | |||||
Small Cap Fund | 5,368 | 14,808 | 20,176 | — | 20,176 | |||||
Mid-Cap Fund | 2,202 | 2,495 | 4,697 | — | 4,697 | |||||
Growth and Income Fund | 801 | — | 801 | — | 801 | |||||
Value Fund | 1,904 | 17 | 1,921 | — | 1,921 | |||||
High Grade Core Fixed Income Fund | 12,913 | 46 | 12,959 | — | 12,959 | |||||
Tax-Free Securities Fund | 283 | 3,961 | 4,244 | 12,703 | 16,947 | |||||
High Grade Short Intermediate Fixed Income Fund | 2,795 | — | 2,795 | — | 2,795 | |||||
Tax-Free Short Intermediate Securities Fund | 371 | — | 371 | 1,717 | 2,088 | |||||
U.S. Government Short Fixed Income Fund | 4,091 | — | 4,091 | — | 4,091 |
The tax character of distributions paid during the year ended July 31, 2005 were as follows (amounts in thousands):
Distributions Paid From | Total Taxable Distributions ($) | Tax Exempt Distributions ($) | Total Distributions Paid ($) | |||||||
Net Investment Income ($) | Net Long-Term Capital Gains ($) | |||||||||
New Asia Growth Fund | 431 | — | 431 | — | 431 | |||||
International Stock Fund | 508 | — | 508 | — | 508 | |||||
Small Cap Fund | 9,961 | 12,613 | 22,574 | — | 22,574 | |||||
Mid-Cap Fund | 296 | — | 296 | — | 296 | |||||
Growth Stock Fund | 513 | — | 513 | — | 513 | |||||
Growth and Income Fund | 870 | — | 870 | — | 870 | |||||
Value Fund | 1,913 | — | 1,913 | — | 1,913 | |||||
High Grade Core Fixed Income Fund | 10,851 | 804 | 11,655 | — | 11,655 | |||||
Tax-Free Securities Fund | 92 | 5,021 | 5,113 | 13,715 | 18,828 | |||||
High Grade Short Intermediate Fixed Income Fund | 2,604 | 12 | 2,616 | — | 2,616 | |||||
Tax-Free Short Intermediate Securities Fund | 7 | — | 7 | 1,741 | 1,748 | |||||
U.S. Government Short Fixed Income Fund | 3,623 | — | 3,623 | — | 3,623 |
Continued
82
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2006
As of July 31, 2006, the components of accumulated earnings/(deficit) on a tax basis were as follows (amounts in thousands):
Undistributed | Accumulated Earnings ($) | Distributions Payable ($) | Accumulated Capital & Other Losses ($) | Unrealized Appreciation/ (Depreciation) ($)* | Total Accumulated Earnings/ (Deficit) ($) | |||||||||||||
Ordinary Income ($) | Long-Term Capital Gain ($) | |||||||||||||||||
New Asia Growth Fund | 497 | 4,290 | 4,787 | — | (14 | ) | 13,516 | 18,289 | ||||||||||
International Stock Fund | 220 | — | 220 | — | (12,145 | ) | 19,972 | 8,047 | ||||||||||
Small Cap Fund | 17,848 | 13,621 | 31,469 | — | — | 17,897 | 49,366 | |||||||||||
Mid-Cap Fund | 824 | 5,448 | 6,272 | — | — | 4,920 | 11,192 | |||||||||||
Growth Stock Fund | — | — | — | — | (90,523 | ) | (3,447 | ) | (93,970 | ) | ||||||||
Growth and Income Fund | — | — | — | — | (11,592 | ) | 4,864 | (6,728 | ) | |||||||||
Value Fund | — | 13,867 | 13,867 | — | — | 14,655 | 28,522 | |||||||||||
High Grade Core Fixed Income Fund | 97 | — | 97 | (152 | ) | (5,320 | ) | 500 | (4,875 | ) | ||||||||
High Grade Short Intermediate Fixed Income Fund | 29 | — | 29 | (29 | ) | (2,049 | ) | (535 | ) | (2,584 | ) | |||||||
U.S. Government Short Fixed Income Fund | 60 | — | 60 | (52 | ) | (2,827 | ) | (209 | ) | (3,028 | ) |
* | Any differences between book-basis and tax basis unrealized appreciation/(depreciation) are attributable to the tax deferral of losses on wash sales and/or passive foreign investment companies. |
Undistributed | Accumulated Earnings ($) | Distributions Payable ($) | Accumulated Capital & Other Losses ($) | Unrealized Appreciation/ (Depreciation) ($) | Total Accumulated Earnings/ (Deficit) ($) | ||||||||||||||
Tax-Exempt Income ($) | Ordinary Income ($) | Long-Term Capital Gain ($) | |||||||||||||||||
Tax-Free Securities Fund | 132 | — | — | 132 | (132 | ) | (293 | ) | 13,545 | 13,252 | |||||||||
Tax-Free Short Intermediate Securities Fund | 24 | — | — | 24 | (23 | ) | (708 | ) | 147 | (560 | ) |
As of the latest tax year end of July 31, 2006, the following Funds had net capital loss carryforwards to offset future net capital gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders:
Expires | ||||||||||
2010 ($) | 2011 ($) | 2012 ($) | 2013 ($) | 2014 ($) | ||||||
International Stock Fund | 2,310,504 | 9,834,840 | — | — | — | |||||
Growth Stock Fund | 8,501,492 | 82,021,934 | — | — | — | |||||
Growth and Income Fund | — | 11,592,422 | — | — | — | |||||
High Grade Core Fixed Income Fund | — | — | — | — | 95,740 | |||||
High Grade Short Intermediate Fixed Income Fund | — | — | — | 55,178 | 605,203 | |||||
Tax-Free Short Intermediate Securities Fund | — | — | — | 14,258 | 18,908 | |||||
U.S. Government Short Fixed Income Fund | — | — | 32,741 | 1,268,106 | 889,880 |
During the year ended July 31, 2006, the International Stock Fund, Growth Stock Fund, Growth and Income Fund and Value Fund utilized $14,227, $16,996, $8,064 and $7,123 in capital loss carryforwards, respectively, (in thousands).
Continued
83
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2006
Under current tax law, capital and foreign currency losses realized after October 31 may be deferred and treated as occurring on the first business day of the following fiscal year. The following Funds have deferred losses, which will be treated as arising on the first day of the fiscal year to end July 31, 2007:
Post October Capital Losses ($) | Foreign Currency Losses ($) | |||
New Asia Growth Fund | — | 14,273 | ||
High Grade Core Fixed Income Fund | 5,224,671 | — | ||
Tax-Free Securities Fund | 292,748 | — | ||
High Grade Short Intermediate Fixed Income Fund | 1,388,441 | — | ||
Tax-Free Short Intermediate Securities Fund | 675,012 | — | ||
U.S. Government Short Fixed Income Fund | 636,072 | — |
7. | Legal and Regulatory Matters |
Management of the Funds has reported to the Funds’ Board of Trustees (the “Board”) that, like many U.S. financial services companies, the Funds and certain of its affiliates have from time to time received formal requests for information from various governmental and self-regulatory agencies in connection with investigations related to mutual funds. Management has advised the Board that the Funds and its affiliates have cooperated fully with each request.
Management of the Funds previously reported to the Board that each of the Funds, the Asset Management Group of Bank of Hawaii, the Bank’s parent company, and four present or former officers of the Bank had received letters from a member of the staff of the Pacific Regional Office of the Securities and Exchange Commission (“SEC”) indicating that the staff intended to recommend to the SEC institution of a civil enforcement action against the recipients related to the SEC’s investigation of alleged market timing and/or excessive trading in shares of the Funds by a former shareholder of the Funds who was at the time an employee of the Bank. In December 2005, the SEC informed the Funds and other recipients that its investigation into the matter had been terminated and no enforcement action had been recommended.
The Bank directly reimbursed those shareholders of the Funds who incurred traceable losses above a de minimis amount resulting from the former employee’s trading activity, or put into escrow funds for such shareholders. Each pension or employee benefit plan was treated as a single shareholder for purposes of applying the de minimis threshold. In addition, the Bank has reimbursed the Funds in the amount of $33,137. The following is a breakout by fund of the $33,137 reimbursement. These amounts are included in the line item “Net increase from payments by affiliates and net realized gains (losses) on the disposal of investments in violation of restrictions” or “Net increase from payments by affiliates” on the Statements of Operations. The impact for all funds is less than $0.005 per share and the Funds believe the matter is now fully resolved.
New Asia Growth Fund | $ | 22,564 | |
Small Cap Fund | 4,377 | ||
Growth Stock Fund | 3,920 | ||
High Grade Short Intermediate Fixed Income Fund | 2,276 |
In addition, BISYS Fund Services, which provides various services to the Trust as described in footnote 4, has reached settlement with the SEC regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Fund management has not determined the degree, if any, to which the Funds are affected by the settlement. Based on management’s review and consideration of the matter to date, management does not believe the Funds’ financial statements would be adversely impacted as a result of this investigation.
Continued
84
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Concluded
July 31, 2006
8. | Special Meetings of Shareholders (unaudited) |
On March 13, 2006, there was a Special Meeting of the Shareholders of the New Asia Growth Fund. The purpose of the meeting was to approve a new sub-advisory agreement with First State Investments International Limited. The number of shares voted is as follows:
No. of Shares | % of Shares Voted | |||
FOR: | 2,689,765 | 99.82 | ||
AGAINST: | 4,028 | 0.15 | ||
ABSTAIN: | 955 | 0.04 | ||
TOTAL: | 2,694,748 | 100 |
On June 9, 2006, there was a Special Meeting of the Shareholders of the Small Cap Fund. A description of the proposals and the number of shares voted is as follows:
1. | To approve a sub-advisory agreement for a portion of the Fund’s investment portfolio with a new sub-adviser, Wellington Management Company, LLP. |
No. of Shares | % of Shares Voted | |||
FOR: | 10,599,252 | 94.962 | ||
AGAINST: | 201,251 | 1.803 | ||
ABSTAIN: | 361,089 | 3.235 | ||
TOTAL: | 11,161,592 | 100 |
2. | To approve a proposal that would permit the Adviser to enter into or materially change agreements with sub-advisers on behalf of the Fund without obtaining prior shareholder approval. |
No. of Shares | % of Shares Voted | |||
FOR: | 10,528,137 | 94.325 | ||
AGAINST: | 275,072 | 2.464 | ||
ABSTAIN: | 358,383 | 3.211 | ||
TOTAL: | 11,161,592 | 100 |
85
PACIFIC CAPITAL FUNDS — NEW ASIA GROWTH FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Transactions | Total from Investment Activities | Net Investment Income | Net Realized Gains on Investments and Foreign Currencies | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 15.52 | $ | 0.10 | $ | 2.12 | $ | 2.22 | $ | (0.10 | ) | $ | (0.80 | ) | $ | (0.90 | ) | $ | 16.84 | 15.00 | % | $ | 2,157 | 1.76 | % | 0.64 | % | 2.08 | % | 44.10 | % | |||||||||||||||||
Year Ended July 31, 2005 | 11.46 | 0.11 | (f) | 4.07 | (f) | 4.18 | (0.12 | ) | — | (0.12 | ) | 15.52 | 36.68 | 1,770 | 1.96 | 0.84 | 2.48 | 44.06 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 9.77 | 0.08 | 1.68 | 1.76 | (0.07 | ) | — | (0.07 | ) | 11.46 | 17.94 | 1,386 | 1.88 | 0.52 | 2.39 | 78.13 | ||||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.83 | 0.02 | (0.07 | ) | (0.05 | ) | (0.01 | ) | — | (0.01 | ) | 9.77 | (0.47 | ) | 1,264 | 2.10 | 0.22 | 2.61 | 110.44 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 9.42 | (0.01 | ) | 0.42 | 0.41 | — | — | — | 9.83 | 4.35 | 1,530 | 1.96 | (0.07 | ) | 2.48 | 70.55 | ||||||||||||||||||||||||||||||||
CLASS B | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 14.97 | $ | — | $ | 2.01 | $ | 2.01 | $ | (0.05 | ) | $ | (0.80 | ) | $ | (0.85 | ) | $ | 16.13 | 14.05 | % | $ | 639 | 2.51 | % | (0.04 | %) | 2.57 | % | 44.10 | % | |||||||||||||||||
Year Ended July 31, 2005 | 11.09 | 0.01 | (f) | 3.93 | (f) | 3.94 | (0.06 | ) | — | (0.06 | ) | 14.97 | 35.66 | 446 | 2.71 | 0.09 | 2.73 | 44.06 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 9.48 | (0.02 | ) | 1.65 | 1.63 | (0.02 | ) | — | (0.02 | ) | 11.09 | 17.18 | 369 | 2.64 | (0.23 | ) | 2.65 | 78.13 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.60 | (0.04 | ) | (0.08 | ) | (0.12 | ) | — | — | — | 9.48 | (1.25 | ) | 424 | 2.85 | (0.51 | ) | 2.86 | 110.44 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 9.22 | (0.10 | ) | 0.48 | 0.38 | — | — | — | 9.60 | 4.12 | 426 | 2.71 | (0.91 | ) | 2.74 | 70.55 | ||||||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 14.96 | $ | (0.01 | ) | $ | 2.02 | $ | 2.01 | $ | (0.05 | ) | $ | (0.80 | ) | $ | (0.85 | ) | $ | 16.12 | 14.08 | % | $ | 413 | 2.51 | % | (0.10 | %) | 2.57 | % | 44.10 | % | ||||||||||||||||
Year Ended July 31, 2005 | 11.09 | 0.04 | (f) | 3.91 | (f) | 3.95 | (0.08 | ) | — | (0.08 | ) | 14.96 | 35.73 | 272 | 2.70 | 0.27 | 2.74 | 44.06 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 11.98 | (0.01 | ) | (0.88 | ) | (0.89 | ) | — | — | — | 11.09 | (7.43 | ) | 9 | 2.53 | (0.66 | ) | 2.53 | 78.13 | |||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 15.72 | $ | 0.14 | $ | 2.15 | $ | 2.29 | $ | (0.14 | ) | $ | (0.80 | ) | $ | (0.94 | ) | $ | 17.07 | 15.26 | % | $ | 85,836 | 1.51 | % | 0.98 | % | 1.57 | % | 44.10 | % | |||||||||||||||||
Year Ended July 31, 2005 | 11.60 | 0.15 | (f) | 4.13 | (f) | 4.28 | (0.16 | ) | — | (0.16 | ) | 15.72 | 37.07 | 44,092 | 1.71 | 1.13 | 1.73 | 44.06 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 9.89 | 0.11 | 1.70 | 1.81 | (0.10 | ) | — | (0.10 | ) | 11.60 | 18.21 | 29,827 | 1.63 | 0.80 | 1.64 | 78.13 | ||||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.93 | 0.05 | (0.06 | ) | (0.01 | ) | (0.03 | ) | — | (0.03 | ) | 9.89 | (0.13 | ) | 23,937 | 1.85 | 0.59 | 1.86 | 110.44 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 9.49 | 0.01 | 0.43 | 0.44 | — | (g) | — | — | (g) | 9.93 | 4.64 | 19,870 | 1.71 | 0.13 | 1.73 | 70.55 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge and/or redemption fees, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | Amounts have been calculated using the daily average shares method. |
(g) | Amount less than $0.005. |
See notes to financial statements.
86
PACIFIC CAPITAL FUNDS — INTERNATIONAL STOCK FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Transactions | Total from Investment Activities | Net Investment Income | Net Realized Gains on Investments and Foreign Currencies | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 8.95 | $ | 0.07 | $ | 1.87 | $ | 1.94 | $ | (0.08 | ) | $ | — | $ | (0.08 | ) | $ | 10.81 | 21.65 | % | $ | 999 | 1.48 | % | 0.68 | % | 1.90 | % | 46.18 | % | |||||||||||||||||
Year Ended July 31, 2005 | 7.41 | 0.05 | (f) | 1.52 | (f) | 1.57 | (0.03 | ) | — | (0.03 | ) | 8.95 | 21.17 | 949 | 1.73 | 0.60 | 2.35 | 37.98 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 6.46 | (0.01 | ) | 0.96 | 0.95 | — | — | — | 7.41 | 14.71 | 884 | 1.78 | (0.05 | ) | 2.38 | 237.06 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.37 | 0.03 | 0.06 | 0.09 | — | — | — | 6.46 | 1.41 | 874 | 1.84 | 0.43 | 2.44 | 178.04 | |||||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 8.15 | (0.04 | ) | (1.74 | ) | (1.78 | ) | — | — | — | 6.37 | (21.84 | ) | 1,137 | 1.81 | (0.15 | ) | 2.44 | 244.40 | ||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 8.54 | $ | (0.01 | ) | $ | 1.77 | $ | 1.76 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 10.27 | 20.63 | % | $ | 673 | 2.23 | % | (0.06 | %) | 2.39 | % | 46.18 | % | ||||||||||||||||
Year Ended July 31, 2005 | 7.10 | (0.01 | )(f) | 1.46 | (f) | 1.45 | (0.01 | ) | — | (0.01 | ) | 8.54 | 20.43 | 649 | 2.48 | (0.16 | ) | 2.60 | 37.98 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 6.24 | (0.05 | ) | 0.91 | 0.86 | — | — | — | 7.10 | 13.78 | 608 | 2.53 | (0.80 | ) | 2.63 | 237.06 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.18 | (0.03 | ) | 0.09 | 0.06 | — | — | — | 6.24 | 0.97 | 536 | 2.59 | (0.36 | ) | 2.69 | 178.04 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 7.94 | (0.07 | ) | (1.69 | ) | (1.76 | ) | — | — | — | 6.18 | (22.17 | ) | 612 | 2.56 | (0.95 | ) | 2.69 | 244.40 | ||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 8.53 | $ | (0.01 | ) | $ | 1.78 | $ | 1.77 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 10.27 | 20.78 | % | $ | 601 | 2.23 | % | (0.04 | %) | 2.39 | % | 46.18 | % | ||||||||||||||||
Year Ended July 31, 2005 | 7.10 | 0.05 | (f) | 1.39 | (f) | 1.44 | (0.01 | ) | — | (0.01 | ) | 8.53 | 20.30 | 494 | 2.42 | 0.57 | 2.55 | 37.98 | |||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 7.48 | (0.01 | ) | (0.37 | ) | (0.38 | ) | — | — | — | 7.10 | (5.08 | ) | 9 | 2.60 | (0.45 | ) | 2.71 | 237.06 | ||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 9.13 | $ | 0.09 | $ | 1.91 | $ | 2.00 | $ | (0.10 | ) | $ | — | $ | (0.10 | ) | $ | 11.03 | 21.90 | % | $ | 209,795 | 1.23 | % | 1.15 | % | 1.39 | % | 46.18 | % | |||||||||||||||||
Year Ended July 31, 2005 | 7.55 | 0.08 | (f) | 1.55 | (f) | 1.63 | (0.05 | ) | — | (0.05 | ) | 9.13 | 21.61 | 93,049 | 1.47 | 0.97 | 1.59 | 37.98 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 6.57 | 0.01 | 0.97 | 0.98 | — | — | — | 7.55 | 14.92 | 59,165 | 1.53 | 0.20 | 1.63 | 237.06 | |||||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.44 | 0.05 | 0.08 | 0.13 | — | — | — | 6.57 | 2.02 | 60,558 | 1.59 | 0.74 | 1.69 | 178.04 | |||||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 8.19 | (0.01 | ) | (1.74 | ) | (1.75 | ) | — | — | — | 6.44 | (21.37 | ) | 50,422 | 1.56 | 0.03 | 1.69 | 244.40 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge and/or redemption fees, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | Amounts have been calculated using the daily average shares method. |
See notes to financial statements.
87
PACIFIC CAPITAL FUNDS — SMALL CAP FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 18.10 | $ | (0.07 | )(f) | $ | 0.93 | (f) | $ | 0.86 | $ | — | $ | (1.29 | ) | $ | (1.29 | ) | $ | 17.67 | 4.97 | % | $ | 215,270 | 1.62 | % | (0.40 | %) | 2.02 | % | 110.61 | % | ||||||||||||||||
Year Ended July 31, 2005 | 16.52 | (0.08 | )(f) | 4.39 | (f) | 4.31 | — | (2.73 | ) | (2.73 | ) | 18.10 | 27.98 | 103,700 | 1.63 | (0.49 | ) | 2.26 | 67.75 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 13.24 | (0.02 | ) | 3.64 | 3.62 | — | (0.34 | ) | (0.34 | ) | 16.52 | 27.53 | 10,625 | 1.55 | (0.37 | ) | 2.15 | 90.26 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 12.15 | (0.01 | ) | 2.59 | 2.58 | (0.02 | ) | (1.47 | ) | (1.49 | ) | 13.24 | 24.62 | 1,595 | 1.60 | (0.08 | ) | 2.20 | 105.27 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 13.47 | 0.03 | (0.36 | ) | (0.33 | ) | (0.03 | ) | (0.96 | ) | (0.99 | ) | 12.15 | (2.72 | ) | 1,265 | 1.58 | 0.20 | 2.20 | 81.67 | ||||||||||||||||||||||||||||
CLASS B | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 17.22 | $ | (0.19 | )(f) | $ | 0.88 | (f) | $ | 0.69 | $ | — | $ | (1.29 | ) | $ | (1.29 | ) | $ | 16.62 | 4.14 | % | $ | 3,093 | 2.37 | % | (1.11 | %) | 2.53 | % | 110.61 | % | ||||||||||||||||
Year Ended July 31, 2005 | 15.94 | (0.21 | ) | 4.22 | 4.01 | — | (2.73 | ) | (2.73 | ) | 17.22 | 27.09 | 3,555 | 2.35 | (1.29 | ) | 2.46 | 67.75 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 12.89 | (0.17 | ) | 3.56 | 3.39 | — | (0.34 | ) | (0.34 | ) | 15.94 | 26.48 | 3,099 | 2.29 | (1.12 | ) | 2.39 | 90.26 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 11.92 | (0.08 | ) | 2.52 | 2.44 | — | (1.47 | ) | (1.47 | ) | 12.89 | 23.74 | 2,476 | 2.35 | (0.83 | ) | 2.45 | 105.27 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 13.29 | (0.06 | ) | (0.35 | ) | (0.41 | ) | — | (g) | (0.96 | ) | (0.96 | ) | 11.92 | (3.38 | ) | 2,013 | 2.33 | (0.61 | ) | 2.44 | 81.67 | ||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 17.23 | $ | (0.20 | )(f) | $ | 0.89 | (f) | $ | 0.69 | $ | — | $ | (1.29 | ) | $ | (1.29 | ) | $ | 16.63 | 4.19 | % | $ | 14,908 | 2.37 | % | (1.15 | %) | 2.53 | % | 110.61 | % | ||||||||||||||||
Year Ended July 31, 2005 | 15.95 | (0.21 | )(f) | 4.22 | (f) | 4.01 | — | (2.73 | ) | (2.73 | ) | 17.23 | 27.00 | 5,832 | 2.40 | (1.33 | ) | 2.54 | 67.75 | |||||||||||||||||||||||||||||
Period Ended July 31, 2004 (c)* | 15.84 | (0.03 | ) | 0.14 | 0.11 | — | — | — | 15.95 | 0.69 | 46 | 2.32 | (1.27 | ) | 2.42 | 90.26 | ||||||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 18.29 | $ | (0.03 | )(f) | $ | 0.95 | (f) | $ | 0.92 | $ | — | $ | (1.29 | ) | $ | (1.29 | ) | $ | 17.92 | 5.26 | % | $ | 197,701 | 1.37 | % | (0.14 | %) | 1.53 | % | 110.61 | % | ||||||||||||||||
Year Ended July 31, 2005 | 16.63 | (0.05 | ) | 4.44 | 4.39 | — | (2.73 | ) | (2.73 | ) | 18.29 | 28.30 | 125,299 | 1.35 | (0.29 | ) | 1.46 | 67.75 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 13.30 | (0.02 | ) | 3.69 | 3.67 | — | (0.34 | ) | (0.34 | ) | 16.63 | 27.78 | 117,641 | 1.29 | (0.12 | ) | 1.39 | 90.26 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 12.18 | 0.03 | 2.60 | 2.63 | (0.04 | ) | (1.47 | ) | (1.51 | ) | 13.30 | 24.96 | 85,520 | 1.35 | 0.19 | 1.45 | 105.27 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 13.49 | 0.06 | (0.35 | ) | (0.29 | ) | (0.06 | ) | (0.96 | ) | (1.02 | ) | 12.18 | (2.47 | ) | 68,001 | 1.33 | 0.47 | 1.45 | 81.67 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | Amounts have been calculated using the daily average shares method. |
(g) | Amount less than $0.005. |
See notes to financial statements.
88
PACIFIC CAPITAL FUNDS — MID-CAP FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 12.75 | $ | 0.01 | $ | 0.22 | $ | 0.23 | $ | (0.02 | ) | $ | (0.75 | ) | $ | (0.77 | ) | $ | 12.21 | 1.78 | % | $ | 886 | 1.05 | % | 0.10 | % | 1.69 | % | 101.34 | % | |||||||||||||||
Year Ended July 31, 2005 | 10.33 | 0.03 | 2.42 | 2.45 | (0.03 | ) | — | (0.03 | ) | 12.75 | 23.69 | 760 | 1.05 | 0.25 | 1.95 | 97.23 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 10.00 | 0.02 | 0.33 | 0.35 | (0.02 | ) | — | (0.02 | ) | 10.33 | 3.50 | 186 | 1.05 | 0.34 | 2.08 | 47.75 | ||||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 12.68 | $ | (0.08 | ) | $ | 0.22 | $ | 0.14 | $ | — | $ | (0.75 | ) | $ | (0.75 | ) | $ | 12.07 | 1.07 | % | $ | 547 | 1.80 | % | (0.64 | %) | 2.18 | % | 101.34 | % | |||||||||||||||
Year Ended July 31, 2005 | 10.32 | (0.03 | ) | 2.39 | 2.36 | — | — | — | 12.68 | 22.87 | 509 | 1.80 | (0.50 | ) | 2.21 | 97.23 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004** | 10.23 | (0.01 | ) | 0.10 | 0.09 | — | — | — | 10.32 | 0.88 | 10 | 1.80 | (0.52 | ) | 2.35 | 47.75 | ||||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 12.76 | $ | 0.04 | $ | 0.22 | $ | 0.26 | $ | (0.04 | ) | $ | (0.75 | ) | $ | (0.79 | ) | $ | 12.23 | 2.06 | % | $ | 73,195 | 0.80 | % | 0.35 | % | 1.18 | % | 101.34 | % | |||||||||||||||
Year Ended July 31, 2005 | 10.34 | 0.05 | 2.42 | 2.47 | (0.05 | ) | — | (0.05 | ) | 12.76 | 23.92 | 83,141 | 0.80 | 0.47 | 1.19 | 97.23 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 10.00 | 0.03 | 0.34 | 0.37 | (0.03 | ) | — | (0.03 | ) | 10.34 | 3.69 | 30,689 | 0.80 | 0.60 | 1.35 | 47.75 |
* | For the period from December 30, 2003 (commencement of operations) to July 31, 2004. |
** | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
See notes to financial statements.
89
PACIFIC CAPITAL FUNDS — GROWTH STOCK FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 8.67 | $ | (0.02 | )(f) | $ | (0.25 | )(f) | $ | (0.27 | ) | $ | — | $ | — | $ | — | $ | 8.40 | (3.11 | %) | $ | 7,979 | 1.39 | % | (0.28 | %) | 1.73 | % | 191.06 | % | ||||||||||||||||
Year Ended July 31, 2005 | 7.87 | — | 0.81 | 0.81 | (0.01 | ) | — | (0.01 | ) | 8.67 | 10.29 | 9,997 | 1.40 | (0.06 | ) | 1.91 | 174.37 | (g) | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.60 | (0.05 | ) | 0.32 | 0.27 | — | — | — | 7.87 | 3.55 | 10,875 | 1.35 | (0.56 | ) | 1.85 | 60.70 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.90 | (0.04 | ) | 0.74 | 0.70 | — | — | — | 7.60 | 10.14 | 11,231 | 1.35 | (0.58 | ) | 1.85 | 33.11 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.25 | (0.08 | ) | (3.27 | ) | (3.35 | ) | — | — | — | 6.90 | (32.68 | ) | 11,701 | 1.34 | (0.80 | ) | 1.86 | 36.85 | ||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 8.14 | $ | (0.08 | )(f) | $ | (0.24 | )(f) | $ | (0.32 | ) | $ | — | $ | — | $ | — | $ | 7.82 | (3.93 | %) | $ | 8,898 | 2.14 | % | (1.03 | %) | 2.20 | % | 191.06 | % | ||||||||||||||||
Year Ended July 31, 2005 | 7.43 | (0.07 | ) | 0.78 | 0.71 | — | — | — | 8.14 | 9.56 | 12,127 | 2.15 | (0.82 | ) | 2.16 | 174.37 | (g) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.23 | (0.11 | ) | 0.31 | 0.20 | — | — | — | 7.43 | 2.77 | 12,804 | 2.10 | (1.31 | ) | 2.10 | 60.70 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.62 | (0.09 | ) | 0.70 | 0.61 | — | — | — | 7.23 | 9.21 | 13,630 | 2.10 | (1.33 | ) | 2.10 | 33.11 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 9.89 | (0.14 | ) | (3.13 | ) | (3.27 | ) | — | — | — | 6.62 | (33.06 | ) | 14,431 | 2.09 | (1.55 | ) | 2.11 | 36.85 | ||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 8.13 | $ | (0.08 | )(f) | $ | (0.23 | )(f) | $ | (0.31 | ) | $ | — | $ | — | $ | — | $ | 7.82 | (3.81 | %) | $ | 1,926 | 2.14 | % | (1.03 | %) | 2.20 | % | 191.06 | % | ||||||||||||||||
Year Ended July 31, 2005 | 7.43 | (0.05 | ) | 0.76 | 0.71 | (0.01 | ) | — | (0.01 | ) | 8.13 | 9.59 | 1,987 | 2.15 | (1.15 | ) | 2.18 | 174.37 | (g) | ||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 7.69 | (0.02 | ) | (0.24 | ) | (0.26 | ) | — | — | — | 7.43 | (3.38 | ) | 11 | 2.13 | (1.24 | ) | 2.13 | 60.70 | ||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 8.92 | $ | — | (f) | $ | (0.26 | )(f) | $ | (0.26 | ) | $ | — | $ | — | $ | — | $ | 8.66 | (2.91 | %) | $ | 144,801 | 1.14 | % | (0.03 | %) | 1.20 | % | 191.06 | % | ||||||||||||||||
Year Ended July 31, 2005 | 8.09 | 0.02 | 0.83 | 0.85 | (0.02 | ) | — | (0.02 | ) | 8.92 | 10.50 | 218,750 | 1.15 | 0.19 | 1.16 | 174.37 | (g) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.79 | (0.03 | ) | 0.33 | 0.30 | — | — | — | 8.09 | 3.85 | 237,799 | 1.10 | (0.31 | ) | 1.10 | 60.70 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 7.06 | (0.02 | ) | 0.75 | 0.73 | — | — | — | 7.79 | 10.34 | 251,310 | 1.10 | (0.33 | ) | 1.10 | 33.11 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.44 | (0.05 | ) | (3.33 | ) | (3.38 | ) | — | — | — | 7.06 | (32.38 | ) | 195,252 | 1.09 | (0.55 | ) | 1.11 | 36.85 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | Amounts have been calculated using the daily average shares method. |
(g) | The portfolio turnover rate increased significantly during the period. This increase was attributable to changes in equity management staff, cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to conditions in the energy and raw materials markets. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed. |
See notes to financial statements.
90
PACIFIC CAPITAL FUNDS — GROWTH AND INCOME FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 13.32 | $ | 0.04 | $ | — | $ | 0.04 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 13.32 | 0.28 | % | $ | 5,519 | 1.38 | % | 0.29 | % | 1.71 | % | 170.39 | % | |||||||||||||||||
Year Ended July 31, 2005 | 11.65 | 0.06 | 1.67 | 1.73 | (0.06 | ) | — | (0.06 | ) | 13.32 | 14.83 | 5,554 | 1.42 | 0.42 | 1.94 | 181.04 | (f) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.69 | 0.01 | 0.96 | 0.97 | (0.01 | ) | — | (0.01 | ) | 11.65 | 9.11 | 5,539 | 1.38 | 0.12 | 1.88 | 48.46 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.89 | 0.02 | 0.80 | 0.82 | (0.02 | ) | — | (0.02 | ) | 10.69 | 8.31 | 5,548 | 1.37 | 0.24 | 1.87 | 46.92 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 13.89 | — | (4.00 | ) | (4.00 | ) | — | — | — | 9.89 | (28.80 | ) | 5,696 | 1.35 | (0.03 | ) | 1.88 | 43.28 | |||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 12.57 | $ | (0.07 | ) | $ | 0.01 | $ | (0.06 | ) | $ | — | $ | — | $ | — | $ | 12.51 | (0.48 | %) | $ | 5,330 | 2.13 | % | (0.44 | %) | 2.19 | % | 170.39 | % | |||||||||||||||||
Year Ended July 31, 2005 | 11.06 | (0.04 | ) | 1.58 | 1.54 | (0.03 | ) | — | (0.03 | ) | 12.57 | 13.93 | 7,193 | 2.17 | (0.33 | ) | 2.19 | 181.04 | (f) | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.21 | (0.07 | ) | 0.92 | 0.85 | — | — | — | 11.06 | 8.33 | 7,509 | 2.13 | (0.63 | ) | 2.13 | 48.46 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.50 | (0.05 | ) | 0.76 | 0.71 | — | — | — | 10.21 | 7.47 | 7,507 | 2.12 | (0.51 | ) | 2.12 | 46.92 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 13.44 | (0.10 | ) | (3.84 | ) | (3.94 | ) | — | — | — | 9.50 | (29.32 | ) | 8,222 | 2.10 | (0.79 | ) | 2.13 | 43.28 | ||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 12.56 | $ | (0.06 | ) | $ | — | $ | (0.06 | ) | $ | — | $ | — | $ | — | $ | 12.50 | (0.48 | %) | $ | 1,913 | 2.13 | % | (0.45 | %) | 2.19 | % | 170.39 | % | |||||||||||||||||
Year Ended July 31, 2005 | 11.06 | (0.02 | ) | 1.57 | 1.55 | (0.05 | ) | — | (0.05 | ) | 12.56 | 14.00 | 1,911 | 2.17 | (0.74 | ) | 2.20 | 181.04 | (f) | ||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 11.17 | (0.02 | ) | (0.09 | ) | (0.11 | ) | — | — | — | 11.06 | (0.98 | ) | 10 | 2.17 | (0.78 | ) | 2.17 | 48.46 | ||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 13.42 | $ | 0.07 | $ | — | $ | 0.07 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 13.42 | 0.52 | % | $ | 152,521 | 1.13 | % | 0.54 | % | 1.19 | % | 170.39 | % | |||||||||||||||||
Year Ended July 31, 2005 | 11.73 | 0.09 | 1.68 | 1.77 | (0.08 | ) | — | (0.08 | ) | 13.42 | 15.12 | 136,311 | 1.17 | 0.67 | 1.19 | 181.04 | (f) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.76 | 0.05 | 0.96 | 1.01 | (0.04 | ) | — | (0.04 | ) | 11.73 | 9.39 | 127,883 | 1.13 | 0.38 | 1.13 | 48.46 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.96 | 0.04 | 0.80 | 0.84 | (0.04 | ) | — | (0.04 | ) | 10.76 | 8.52 | 138,027 | 1.12 | 0.49 | 1.12 | 46.92 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 13.97 | 0.03 | (4.02 | ) | (3.99 | ) | (0.02 | ) | — | (0.02 | ) | 9.96 | (28.60 | ) | 116,719 | 1.10 | 0.20 | 1.13 | 43.28 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | The portfolio turnover rate increased significantly during the period. This increase was attributable to changes in equity management staff, cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to conditions in the energy and raw materials markets. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed. |
See notes to financial statements.
91
PACIFIC CAPITAL FUNDS — VALUE FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 9.87 | $ | 0.09 | $ | 0.83 | $ | 0.92 | $ | (0.10 | ) | $ | — | $ | (0.10 | ) | $ | 10.69 | 9.39 | % | $ | 2,991 | 1.34 | % | 0.91 | % | 1.67 | % | 141.07 | % | |||||||||||||||||
Year Ended July 31, 2005 | 8.37 | 0.08 | 1.50 | 1.58 | (0.08 | ) | — | (0.08 | ) | 9.87 | 18.75 | 2,910 | 1.36 | 0.78 | 1.87 | 129.24 | (f) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.37 | 0.06 | 1.00 | 1.06 | (0.06 | ) | — | (0.06 | ) | 8.37 | 14.52 | 2,477 | 1.33 | 0.63 | 1.83 | 73.48 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 7.02 | 0.07 | 0.35 | 0.42 | (0.07 | ) | — | (0.07 | ) | 7.37 | 6.07 | 2,146 | 1.32 | 1.05 | 1.82 | 77.62 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 9.13 | 0.04 | (2.11 | ) | (2.07 | ) | (0.04 | ) | — | (0.04 | ) | 7.02 | (22.74 | ) | 2,032 | 1.30 | 0.48 | 1.82 | 48.18 | ||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 9.70 | $ | 0.02 | $ | 0.81 | $ | 0.83 | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | $ | 10.51 | 8.57 | % | $ | 1,433 | 2.09 | % | 0.17 | % | 2.15 | % | 141.07 | % | |||||||||||||||||
Year Ended July 31, 2005 | 8.25 | — | 1.48 | 1.48 | (0.03 | ) | — | (0.03 | ) | 9.70 | 18.00 | 1,460 | 2.11 | 0.04 | 2.12 | 129.24 | (f) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.27 | — | 0.99 | 0.99 | (0.01 | ) | — | (0.01 | ) | 8.25 | 13.55 | 1,349 | 2.08 | (0.11 | ) | 2.08 | 73.48 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.93 | 0.02 | 0.34 | 0.36 | (0.02 | ) | — | (0.02 | ) | 7.27 | 5.22 | 1,291 | 2.07 | 0.31 | 2.07 | 77.62 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 9.04 | (0.02 | ) | (2.09 | ) | (2.11 | ) | — | — | — | 6.93 | (23.34 | ) | 1,427 | 2.05 | (0.28 | ) | 2.07 | 48.18 | ||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 9.74 | $ | 0.02 | $ | 0.81 | $ | 0.83 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 10.54 | 8.57 | % | $ | 2,082 | 2.09 | % | 0.16 | % | 2.15 | % | 141.07 | % | |||||||||||||||||
Year Ended July 31, 2005 | 8.25 | — | 1.50 | 1.50 | (0.01 | ) | — | (0.01 | ) | 9.74 | 18.00 | 1,833 | 2.11 | (0.19 | ) | 2.14 | 129.24 | (f) | |||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 8.19 | — | 0.06 | 0.06 | — | — | — | 8.25 | 0.87 | 10 | 2.11 | (0.05 | ) | 2.11 | 73.48 | ||||||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 9.89 | $ | 0.13 | $ | 0.82 | $ | 0.95 | $ | (0.13 | ) | $ | — | $ | (0.13 | ) | $ | 10.71 | 9.64 | % | $ | 145,676 | 1.09 | % | 1.18 | % | 1.15 | % | 141.07 | % | |||||||||||||||||
Year Ended July 31, 2005 | 8.39 | 0.10 | 1.50 | 1.60 | (0.10 | ) | — | (0.10 | ) | 9.89 | 19.12 | 182,279 | 1.11 | 1.05 | 1.12 | 129.24 | (f) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.38 | 0.08 | 1.01 | 1.09 | (0.08 | ) | — | (0.08 | ) | 8.39 | 14.76 | 178,389 | 1.08 | 0.89 | 1.08 | 73.48 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 7.03 | 0.09 | 0.35 | 0.44 | (0.09 | ) | — | (0.09 | ) | 7.38 | 6.32 | 210,881 | 1.07 | 1.30 | 1.07 | 77.62 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 9.15 | 0.06 | (2.12 | ) | (2.06 | ) | (0.06 | ) | — | (0.06 | ) | 7.03 | (22.59 | ) | 198,862 | 1.05 | 0.71 | 1.07 | 48.18 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | The portfolio turnover rate increased significantly during the period. This increase was attributable to changes in equity management staff, cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to conditions in the energy and raw materials markets. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed. |
See notes to financial statements.
92
PACIFIC CAPITAL FUNDS — HIGH GRADE CORE FIXED INCOME FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 11.02 | $ | 0.44 | $ | (0.41 | ) | $ | 0.03 | $ | (0.44 | ) | $ | — | (f) | $ | (0.44 | ) | $ | 10.61 | 0.29 | % | $ | 3,689 | 0.96 | % | 4.06 | % | 1.45 | % | 85.53 | % | |||||||||||||||
Year Ended July 31, 2005 | 11.05 | 0.40 | — | 0.40 | (0.40 | ) | (0.03 | ) | (0.43 | ) | 11.02 | 3.67 | 4,577 | 1.00 | 3.58 | 1.67 | 27.95 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 11.28 | 0.42 | (0.03 | ) | 0.39 | (0.42 | ) | (0.20 | ) | (0.62 | ) | 11.05 | 3.46 | 5,222 | 0.98 | 3.72 | 1.63 | 48.55 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 11.22 | 0.47 | 0.17 | 0.64 | (0.47 | ) | (0.11 | ) | (0.58 | ) | 11.28 | 5.76 | 8,841 | 0.97 | 4.04 | 1.62 | 52.53 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.89 | 0.53 | 0.33 | 0.86 | (0.53 | ) | — | (0.53 | ) | 11.22 | 8.13 | 6,755 | 0.96 | 4.86 | 1.63 | 71.59 | |||||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 11.00 | $ | 0.36 | $ | (0.41 | ) | $ | (0.05 | ) | $ | (0.36 | ) | $ | — | (f) | $ | (0.36 | ) | $ | 10.59 | (0.45 | %) | $ | 2,944 | 1.71 | % | 3.32 | % | 1.92 | % | 85.53 | % | ||||||||||||||
Year Ended July 31, 2005 | 11.03 | 0.32 | — | 0.32 | (0.32 | ) | (0.03 | ) | (0.35 | ) | 11.00 | 2.90 | 4,019 | 1.75 | 2.83 | 1.92 | 27.95 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 11.26 | 0.33 | (0.03 | ) | 0.30 | (0.33 | ) | (0.20 | ) | (0.53 | ) | 11.03 | 2.70 | 4,397 | 1.73 | 2.97 | 1.88 | 48.55 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 11.20 | 0.38 | 0.17 | 0.55 | (0.38 | ) | (0.11 | ) | (0.49 | ) | 11.26 | 4.96 | 5,193 | 1.72 | 3.30 | 1.87 | 52.53 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.87 | 0.45 | 0.33 | 0.78 | (0.45 | ) | — | (0.45 | ) | 11.20 | 7.34 | 4,997 | 1.71 | 4.11 | 1.88 | 71.59 | |||||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 11.00 | $ | 0.36 | $ | (0.41 | ) | $ | (0.05 | ) | $ | (0.36 | ) | $ | — | (f) | $ | (0.36 | ) | $ | 10.59 | (0.45 | %) | $ | 1,322 | 1.71 | % | 3.34 | % | 1.92 | % | 85.53 | % | ||||||||||||||
Year Ended July 31, 2005 | 11.02 | 0.32 | 0.01 | 0.33 | (0.32 | ) | (0.03 | ) | (0.35 | ) | 11.00 | 3.00 | 1,188 | 1.75 | 2.90 | 1.93 | 27.95 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 11.02 | 0.08 | — | 0.08 | (0.08 | ) | — | (0.08 | ) | 11.02 | 0.76 | 10 | 1.75 | 2.98 | 1.90 | 48.55 | |||||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 11.09 | $ | 0.47 | $ | (0.42 | ) | $ | 0.05 | $ | (0.47 | ) | $ | — | (f) | $ | (0.47 | ) | $ | 10.67 | 0.45 | % | $ | 287,360 | 0.71 | % | 4.30 | % | 0.92 | % | 85.53 | % | |||||||||||||||
Year Ended July 31, 2005 | 11.12 | 0.43 | — | 0.43 | (0.43 | ) | (0.03 | ) | (0.46 | ) | 11.09 | 3.90 | 294,240 | 0.74 | 3.81 | 0.91 | 27.95 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 11.35 | 0.45 | (0.03 | ) | 0.42 | (0.45 | ) | (0.20 | ) | (0.65 | ) | 11.12 | 3.73 | 268,129 | 0.73 | 3.97 | 0.88 | 48.55 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 11.29 | 0.50 | 0.17 | 0.67 | (0.50 | ) | (0.11 | ) | (0.61 | ) | 11.35 | 6.00 | 235,902 | 0.72 | 4.30 | 0.87 | 52.53 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.96 | 0.56 | 0.33 | 0.89 | (0.56 | ) | — | (0.56 | ) | 11.29 | 8.38 | 222,500 | 0.71 | 5.11 | 0.88 | 71.59 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | Amount less than $0.005. |
See notes to financial statements.
93
PACIFIC CAPITAL FUNDS — TAX-FREE SECURITIES FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.52 | $ | 0.40 | $ | (0.28 | ) | $ | 0.12 | $ | (0.40 | ) | $ | (0.13 | ) | $ | (0.53 | ) | $ | 10.11 | 1.19 | % | $ | 6,209 | 0.98 | % | 3.87 | % | 1.48 | % | 59.63 | %(f) | ||||||||||||||
Year Ended July 31, 2005 | 10.72 | 0.41 | (0.04 | ) | 0.37 | (0.41 | ) | (0.16 | ) | (0.57 | ) | 10.52 | 3.49 | 8,973 | 1.00 | 3.83 | 1.67 | 8.65 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.75 | 0.44 | 0.02 | 0.46 | (0.44 | ) | (0.05 | ) | (0.49 | ) | 10.72 | 4.32 | 9,928 | 0.97 | 4.03 | 1.62 | 8.87 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.86 | 0.43 | (0.05 | ) | 0.38 | (0.43 | ) | (0.06 | ) | (0.49 | ) | 10.75 | 3.54 | 11,829 | 0.96 | 3.93 | 1.61 | 1.24 | ||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.74 | 0.45 | 0.23 | 0.68 | (0.45 | ) | (0.11 | ) | (0.56 | ) | 10.86 | 6.47 | 11,765 | 0.94 | 4.17 | 1.61 | 13.40 | |||||||||||||||||||||||||||||
CLASS B | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.52 | $ | 0.32 | $ | (0.28 | ) | $ | 0.04 | $ | (0.32 | ) | $ | (0.13 | ) | $ | (0.45 | ) | $ | 10.11 | 0.44 | % | $ | 2,375 | 1.73 | % | 3.11 | % | 1.94 | % | 59.63 | %(f) | ||||||||||||||
Year Ended July 31, 2005 | 10.72 | 0.33 | (0.04 | ) | 0.29 | (0.33 | ) | (0.16 | ) | (0.49 | ) | 10.52 | 2.71 | 3,344 | 1.75 | 3.08 | 1.92 | 8.65 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.75 | 0.35 | 0.02 | 0.37 | (0.35 | ) | (0.05 | ) | (0.40 | ) | 10.72 | 3.55 | 4,054 | 1.72 | 3.28 | 1.87 | 8.87 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.85 | 0.35 | (0.04 | ) | 0.31 | (0.35 | ) | (0.06 | ) | (0.41 | ) | 10.75 | 2.86 | 4,643 | 1.71 | 3.18 | 1.86 | 1.24 | ||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.74 | 0.37 | 0.22 | 0.59 | (0.37 | ) | (0.11 | ) | (0.48 | ) | 10.85 | 5.58 | 5,458 | 1.69 | 3.42 | 1.86 | 13.40 | |||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.53 | $ | 0.32 | $ | (0.29 | ) | $ | 0.03 | $ | (0.32 | ) | $ | (0.13 | ) | $ | (0.45 | ) | $ | 10.11 | 0.35 | % | $ | 10 | 1.73 | % | 3.11 | % | 1.94 | % | 59.63 | %(f) | ||||||||||||||
Year Ended July 31, 2005 | 10.72 | 0.33 | (0.03 | ) | 0.30 | (0.33 | ) | (0.16 | ) | (0.49 | ) | 10.53 | 2.83 | 10 | 1.74 | 3.09 | 1.90 | 8.65 | ||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 10.72 | 0.09 | — | 0.09 | (0.09 | ) | — | (0.09 | ) | 10.72 | 0.82 | 10 | 1.74 | 3.22 | 1.89 | 8.87 | ||||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.57 | $ | 0.42 | $ | (0.29 | ) | $ | 0.13 | $ | (0.42 | ) | $ | (0.13 | ) | $ | (0.55 | ) | $ | 10.15 | 1.34 | % | $ | 287,126 | 0.73 | % | 4.09 | % | 0.94 | % | 59.63 | %(f) | ||||||||||||||
Year Ended July 31, 2005 | 10.76 | 0.44 | (0.03 | ) | 0.41 | (0.44 | ) | (0.16 | ) | (0.60 | ) | 10.57 | 3.83 | 315,854 | 0.75 | 4.06 | 0.92 | 8.65 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.79 | 0.47 | 0.02 | 0.49 | (0.47 | ) | (0.05 | ) | (0.52 | ) | 10.76 | 4.59 | 343,890 | 0.72 | 4.28 | 0.87 | 8.87 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.90 | 0.46 | (0.05 | ) | 0.41 | (0.46 | ) | (0.06 | ) | (0.52 | ) | 10.79 | 3.80 | 397,157 | 0.71 | 4.18 | 0.86 | 1.24 | ||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.78 | 0.47 | 0.23 | 0.70 | (0.47 | ) | (0.11 | ) | (0.58 | ) | 10.90 | 6.73 | 445,733 | 0.69 | 4.42 | 0.86 | 13.40 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | The portfolio turnover rate increased significantly during the period. This increase was attributable to cashflows into and out of the Fund as well as tactical portfolio adjustments made in response to rising short and intermediate interest rates. The basic characteristics of the Fund in terms of market capitalization, style and diversification have not changed. |
See notes to financial statements.
94
PACIFIC CAPITAL FUNDS — HIGH GRADE SHORT INTERMEDIATE FIXED INCOME FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 9.66 | $ | 0.34 | $ | (0.13 | ) | $ | 0.21 | $ | (0.34 | ) | $ | — | $ | (0.34 | ) | $ | 9.53 | 2.21 | % | $ | 1,261 | 0.78 | % | 3.49 | % | 1.43 | % | 74.37 | % | |||||||||||||||
Year Ended July 31, 2005 | 9.80 | 0.26 | (0.14 | ) | 0.12 | (0.26 | ) | — | (f) | (0.26 | ) | 9.66 | 1.27 | 1,781 | 0.80 | 2.69 | 1.59 | 35.32 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 9.97 | 0.25 | (0.13 | ) | 0.12 | (0.25 | ) | (0.04 | ) | (0.29 | ) | 9.80 | 1.11 | 1,724 | 0.80 | 2.48 | 1.55 | 49.42 | ||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.06 | 0.31 | 0.02 | 0.33 | (0.31 | ) | (0.11 | ) | (0.42 | ) | 9.97 | 3.28 | 5,327 | 0.80 | 2.93 | 1.55 | 17.50 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 9.81 | 0.34 | 0.30 | 0.64 | (0.34 | ) | (0.05 | ) | (0.39 | ) | 10.06 | 6.68 | 2,148 | 0.81 | 3.44 | 1.57 | 62.60 | |||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 9.65 | $ | 0.27 | $ | (0.13 | ) | $ | 0.14 | $ | (0.27 | ) | $ | — | $ | (0.27 | ) | $ | 9.52 | 1.45 | % | $ | 675 | 1.53 | % | 2.80 | % | 1.89 | % | 74.37 | % | |||||||||||||||
Year Ended July 31, 2005 | 9.80 | 0.19 | (0.15 | ) | 0.04 | (0.19 | ) | — | (f) | (0.19 | ) | 9.65 | 0.40 | 631 | 1.55 | 1.99 | 1.84 | 35.32 | ||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 9.84 | 0.04 | (0.04 | ) | — | (0.04 | ) | — | (0.04 | ) | 9.80 | 0.04 | 10 | 1.55 | 1.75 | 1.82 | 49.42 | |||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 9.68 | $ | 0.36 | $ | (0.13 | ) | $ | 0.23 | $ | (0.36 | ) | $ | — | $ | (0.36 | ) | $ | 9.55 | 2.46 | % | $ | 60,257 | 0.53 | % | 3.74 | % | 0.89 | % | 74.37 | % | |||||||||||||||
Year Ended July 31, 2005 | 9.82 | 0.29 | (0.14 | ) | 0.15 | (0.29 | ) | — | (f) | (0.29 | ) | 9.68 | 1.52 | 85,991 | 0.55 | 2.93 | 0.84 | 35.32 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 9.99 | 0.27 | (0.13 | ) | 0.14 | (0.27 | ) | (0.04 | ) | (0.31 | ) | 9.82 | 1.38 | 81,346 | 0.55 | 2.73 | 0.81 | 49.42 | ||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.09 | 0.33 | 0.01 | 0.34 | (0.33 | ) | (0.11 | ) | (0.44 | ) | 9.99 | 3.41 | 88,824 | 0.55 | 3.23 | 0.80 | 17.50 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 9.83 | 0.37 | 0.31 | 0.68 | (0.37 | ) | (0.05 | ) | (0.42 | ) | 10.09 | 7.03 | 62,156 | 0.56 | 3.69 | 0.82 | 62.60 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | Amount less than $0.005. |
See notes to financial statements.
95
PACIFIC CAPITAL FUNDS — TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.21 | $ | 0.28 | $ | (0.16 | ) | $ | 0.12 | $ | (0.28 | ) | $ | — | $ | (0.28 | ) | $ | 10.05 | 1.22 | % | $ | 2,792 | 1.00 | % | 2.78 | % | 1.44 | % | 112.73 | %(f) | |||||||||||||||
Year Ended July 31, 2005 | 10.30 | 0.23 | (0.09 | ) | 0.14 | (0.23 | ) | — | (0.23 | ) | 10.21 | 1.40 | 3,784 | 1.00 | 2.26 | 1.62 | 28.31 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.36 | 0.22 | (0.06 | ) | 0.16 | (0.22 | ) | — | (0.22 | ) | 10.30 | 1.53 | 4,781 | 0.97 | 2.09 | 1.58 | 11.30 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.39 | 0.25 | 0.02 | 0.27 | (0.25 | ) | (0.05 | ) | (0.30 | ) | 10.36 | 2.62 | 2,322 | 0.97 | 2.40 | 1.58 | 6.01 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.18 | 0.29 | 0.21 | 0.50 | (0.29 | ) | — | (0.29 | ) | 10.39 | 4.98 | 2,157 | 0.98 | 2.82 | 1.61 | 37.24 | ||||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.21 | $ | 0.20 | $ | (0.15 | ) | $ | 0.05 | $ | (0.20 | ) | $ | — | $ | (0.20 | ) | $ | 10.06 | 0.55 | % | $ | 10 | 1.75 | % | 2.03 | % | 1.91 | % | 112.73 | %(f) | |||||||||||||||
Year Ended July 31, 2005 | 10.31 | 0.16 | (0.10 | ) | 0.06 | (0.16 | ) | — | (0.16 | ) | 10.21 | 0.54 | 10 | 1.75 | 1.52 | 1.87 | 28.31 | |||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 10.32 | 0.04 | (0.01 | ) | 0.03 | (0.04 | ) | — | (0.04 | ) | 10.31 | 0.26 | 10 | 1.72 | 1.41 | 1.83 | 11.30 | |||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.27 | $ | 0.31 | $ | (0.16 | ) | $ | 0.15 | $ | (0.31 | ) | $ | — | $ | (0.31 | ) | $ | 10.11 | 1.47 | % | $ | 62,816 | 0.75 | % | 3.03 | % | 0.91 | % | 112.73 | %(f) | |||||||||||||||
Year Ended July 31, 2005 | 10.36 | 0.26 | (0.09 | ) | 0.17 | (0.26 | ) | — | (0.26 | ) | 10.27 | 1.65 | 65,070 | 0.74 | 2.51 | 0.86 | 28.31 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.41 | 0.24 | (0.05 | ) | 0.19 | (0.24 | ) | — | (0.24 | ) | 10.36 | 1.87 | 67,606 | 0.72 | 2.34 | 0.83 | 11.30 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.45 | 0.28 | 0.01 | 0.29 | (0.28 | ) | (0.05 | ) | (0.33 | ) | 10.41 | 2.78 | 63,449 | 0.72 | 2.64 | 0.83 | 6.01 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.23 | 0.32 | 0.22 | 0.54 | (0.32 | ) | — | (0.32 | ) | 10.45 | 5.33 | 49,599 | 0.73 | 3.06 | 0.86 | 37.24 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | The portfolio turnover rate increased significantly over the period. This increase was primarily attributable to tactical portfolio adjustments made in response to rising short and intermediate interest rates and Hawaii municipal bond availability. The basic characteristics of the Fund in terms of style and diversification have not changed. |
See notes to financial statements.
96
PACIFIC CAPITAL FUNDS — U.S. GOVERNMENT SHORT FIXED INCOME FUND
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.04 | $ | 0.32 | $ | — | $ | 0.32 | $ | (0.32 | ) | $ | — | $ | (0.32 | ) | $ | 10.04 | 3.27 | % | $ | 2,355 | 0.63 | % | 3.03 | % | 1.36 | % | 88.38 | % | |||||||||||||||||
Year Ended July 31, 2005 | 10.10 | 0.18 | (0.06 | ) | 0.12 | (0.18 | ) | — | (0.18 | ) | 10.04 | 1.19 | 6,552 | 0.62 | 1.76 | 1.47 | 64.16 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.24 | 0.18 | (0.14 | ) | 0.04 | (0.18 | ) | — | (0.18 | ) | 10.10 | 0.36 | 8,743 | 0.62 | 1.74 | 1.43 | 111.13 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.31 | 0.23 | (0.06 | ) | 0.17 | (0.23 | ) | (0.01 | ) | (0.24 | ) | 10.24 | 1.67 | 12,787 | 0.62 | 2.23 | 1.42 | 17.41 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.20 | 0.30 | 0.11 | 0.41 | (0.30 | ) | — | (f) | (0.30 | ) | 10.31 | 4.10 | 14,116 | 0.62 | 2.93 | 1.42 | 26.15 | ||||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.04 | $ | 0.25 | $ | — | $ | 0.25 | $ | (0.25 | ) | $ | — | $ | (0.25 | ) | $ | 10.04 | 2.50 | % | $ | 1,238 | 1.38 | % | 2.44 | % | 1.77 | % | 88.38 | % | |||||||||||||||||
Year Ended July 31, 2005 | 10.10 | 0.10 | (0.06 | ) | 0.04 | (0.10 | ) | — | (0.10 | ) | 10.04 | 0.43 | 1,609 | 1.37 | 1.01 | 1.72 | 64.16 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.24 | 0.10 | (0.14 | ) | (0.04 | ) | (0.10 | ) | — | (0.10 | ) | 10.10 | (0.38 | ) | 1,965 | 1.37 | 0.99 | 1.68 | 111.13 | ||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.31 | 0.15 | (0.06 | ) | 0.09 | (0.15 | ) | (0.01 | ) | (0.16 | ) | 10.24 | 0.91 | 1,994 | 1.37 | 1.46 | 1.67 | 17.41 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.21 | 0.22 | 0.10 | 0.32 | (0.22 | ) | — | (f) | (0.22 | ) | 10.31 | 3.22 | 1,403 | 1.37 | 2.14 | 1.67 | 26.15 | ||||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.04 | $ | 0.25 | $ | — | $ | 0.25 | $ | (0.25 | ) | $ | — | $ | (0.25 | ) | $ | 10.04 | 2.50 | % | $ | 1,514 | 1.38 | % | 2.45 | % | 1.77 | % | 88.38 | % | |||||||||||||||||
Year Ended July 31, 2005 | 10.10 | 0.10 | (0.06 | ) | 0.04 | (0.10 | ) | — | (0.10 | ) | 10.04 | 0.43 | 1,834 | 1.37 | 1.20 | 1.72 | 64.16 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 10.15 | 0.02 | (0.05 | ) | (0.03 | ) | (0.02 | ) | — | (0.02 | ) | 10.10 | (0.26 | ) | 10 | 1.37 | 0.85 | 1.58 | 111.13 | ||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2006 | $ | 10.05 | $ | 0.35 | $ | (0.01 | ) | $ | 0.34 | $ | (0.35 | ) | $ | — | $ | (0.35 | ) | $ | 10.04 | 3.42 | % | $ | 96,102 | 0.38 | % | 3.43 | % | 0.77 | % | 88.38 | % | ||||||||||||||||
Year Ended July 31, 2005 | 10.11 | 0.20 | (0.06 | ) | 0.14 | (0.20 | ) | — | (0.20 | ) | 10.05 | 1.44 | 125,349 | 0.37 | 1.98 | 0.71 | 64.16 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.25 | 0.20 | (0.14 | ) | 0.06 | (0.20 | ) | — | (0.20 | ) | 10.11 | 0.61 | 215,124 | 0.37 | 1.99 | 0.68 | 111.13 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.32 | 0.26 | (0.06 | ) | 0.20 | (0.26 | ) | (0.01 | ) | (0.27 | ) | 10.25 | 1.92 | 240,916 | 0.37 | 2.47 | 0.67 | 17.41 | |||||||||||||||||||||||||||||
Year Ended July 31, 2002 | 10.21 | 0.33 | 0.11 | 0.44 | (0.33 | ) | — | (f) | (0.33 | ) | 10.32 | 4.35 | 185,806 | 0.37 | 3.16 | 0.67 | 26.15 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(f) | Amount less than $0.005. |
See notes to financial statements.
97
PACIFIC CAPITAL FUNDS
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of
Pacific Capital Funds:
We have audited the accompanying statements assets and liabilities of Pacific Capital Funds - New Asia Growth Fund, International Stock Fund, Small Cap Fund, Mid-Cap Fund, Growth Stock Fund, Growth and Income Fund, Value Fund, High Grade Core Fixed Income Fund, Tax-Free Securities Fund, High Grade Short Intermediate Fixed Income Fund, Tax-Free Short Intermediate Securities Fund and U.S. Government Short Fixed Income Fund (the Funds), including the schedules of portfolio investments, as of July 31, 2006, and the related statements of operations for the year then ended and the statements of changes in net assets and financial highlights for each year in the two-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The accompanying financial highlights for the periods ended July 31, 2004 and prior were audited by other auditors whose report thereon dated September 1, 2004, expressed an unqualified opinion on those financial statements and financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2006, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of July 31, 2006, and the results of their operations for the year then ended and the changes in their net assets and financial highlights for each year in the two-year period then ended, in conformity with U.S. generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
September 28, 2006
98
PACIFIC CAPITAL FUNDS
Additional | Tax Information (unaudited) |
For the fiscal year ended July 31, 2006, certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2006 Form 1099-DIV.
For the year ended July 31, 2006, the following Funds paid qualified dividend income (amounts in thousands):
Qualified Dividend Income ($) | ||
New Asia Growth Fund | 161 | |
International Stock Fund | 2,143 | |
Small Cap Fund | 1,492 | |
Mid-Cap Fund | 1,025 | |
Growth and Income Fund | 728 | |
Value Fund | 1,904 |
For corporate shareholders, the following percentages of the total ordinary income distributions paid by the Funds during the year ended July 31, 2006 qualify for the corporate dividends received deduction:
Dividend Received Deduction (%) | ||
Small Cap Fund | 27.80 | |
Mid-Cap Fund | 49.35 | |
Growth and Income Fund | 100.00 | |
Value Fund | 100.00 |
The Funds may elect to pass through foreign taxes paid by the Funds to its shareholders under Code 853 of the Internal Revenue Code. The following Funds intend to pass through to shareholders the income tax credit for taxes paid to foreign countries. Foreign source income and foreign tax expense per share outstanding on July 31, 2006 are as follows:
Foreign Source Income($) | Foreign Tax Expense($) | |||
New Asia Growth Fund | 0.23 | 0.02 | ||
International Stock Fund | 0.14 | 0.02 |
The pass through of the foreign tax credit will only affect those persons who are shareholders on the dividend record date in December 2006. These shareholders will receive more detailed information along with their 2006 Form 1099-DIV.
The Tax-Free Securities Fund and the Tax-Free Short Intermediate Securities Fund designate 100% of its income dividends as exempt-interest dividends.
The accompanying table below details distributions designated from long-term capital gains for the following funds for the fiscal year ended July 31, 2006 (amounts in thousands):
Amount($) | ||
New Asia Growth Fund | 2,618 | |
Small Cap Fund | 14,808 | |
Mid-Cap Fund | 2,495 | |
Value Fund | 35 | |
High Grade Core Fixed Income Fund | 46 | |
Tax-Free Securities Fund | 3,961 |
99
PACIFIC CAPITAL FUNDS
Trustees and Executive Officers of the Pacific Capital Funds
Interested Trustees. The table below sets forth certain information about each of the Trustees of the Trust who are “interested persons” of the Trust as defined by the Investment Company Act of 1940, as amended (“1940 Act”).
Name, Address and Age | Position(s) | Term of | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held by Trustee | |||||
Peter S. Ho* 130 Merchant Street, 22nd Floor Honolulu, Hawaii 96813 Age: 41 | Trustee | Indefinite; Since: 5/04 | Vice Chairman and Chief Banking Officer, Bank of Hawaii—Commercial Banking (since 2006) and Investment Services Group (since 2004); Executive Vice President, Bank of Hawaii—Commercial Group (2003-2004); Executive Vice President/Senior Vice President/Vice President, Bank of Hawaii—Corporate Banking (1996-2003) | 12 | Member of the Board of: Rehabilitation Hospital Foundation, Hawaii Chapter of the American Red Cross, the Hawaii Foodbank, Hawaii Dental Service, Special Olympics of Hawaii, Oceanic Institute, Hawaii Pacific University, Hanahau’oli School, Frederic Duclos Barstow Foundation, Historic Hawaii Foundation, the Hawaii Community Foundation and the Mclnerny Foundation. |
* | Mr. Ho is an “interested person” of the Trust, as identified by the 1940 Act, because of his employment with the Asset Management Group of Bank of Hawaii, the Investment Advisor to the Trust |
Independent Trustees. The table below sets forth certain information about the Trustees of the Trust who are not “interested persons” of the Trust as defined in the 1940 Act.
Name, Address and Age | Position(s) | Term of | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held by Trustee | |||||
Richard L. Humphreys 970 N. Kalaheo Avenue, Suite C110 Kailua, Hawaii 96734 Age: 62 | Trustee | Indefinite; Since: 3/05 | President of Hawaii Receivables Management LLC (since 2001); President of Lynk Payment Systems Hawaii LLC (since 2002) | 12 | Board member of Pantheon Corporation, The Castle Group, Inc., and other charitable and civic organizations. | |||||
Stanley W. Hong 4976 Poola Street Honolulu, Hawaii 96821 Age: 70 | Trustee | Indefinite; Since: 10/92 | Trustee of The King Williams Charles Lunalilo Trust Estate (since 2001); President of Waste Management of Hawaii, Inc. (2002-2005); Corporate Vice President (2002-2005), Hawaii Area Waste Management; Trustee, President and Chief Executive Officer, The Chamber of Commerce of Hawaii (1996-2002) | 12 | Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1993); Member of the Board of: First Insurance Co. of Hawaii, Ltd., Lanihau Properties, LLC, Diagnostic Laboratory Services, Inc., WESTYE Group—West, Inc.; Member of the Board of the following non-profit organizations: Chaminade University of Honolulu, the Nature Conservancy of Hawaii, PBS Hawaii Foundation, Heald College of Business & Technology, Katuro Watanabe Charitable Foundation, and Honolulu Festival Foundation. |
100
PACIFIC CAPITAL FUNDS
Name, Address and Age | Position(s) | Term of | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held by Trustee | |||||
Russell K. Okata
Suite 601 Honolulu, Hawaii 96813 Age: 62 | Trustee | Indefinite; Since: 10/92 | Executive Director, Hawaii Government Employees Association AFSCME Local 152, AFL-CIO (since 1981); International Vice President, American Federation of State, County and Municipal Employees, AFL-CIO (since 1981) | 12 | Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1993); Chairman of the Royal State Group (since 1988); Member of the Board of: Blood Bank of Hawaii, Public Schools of Hawaii Foundation and other community organizations. | |||||
Douglas Philpotts 55 Dowsett Avenue Honolulu, Hawaii 96817 Age: 75 | Trustee | Indefinite; Since: 10/92 | Retired. Formerly Director, Chairman of the Board and President of Hawaiian Trust Co., Ltd. (until 1994), a predecessor of the Asset Management Group of Bank of Hawaii | 12 | Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1993); Trustee of The Strong Foundation (support of programs for Hawaiian youth) (since 1974). | |||||
Oswald K. Stender 711 Kapiolani Boulevard, Suite 1250 Honolulu, Hawaii 96813 Age: 74 | Trustee | Indefinite; Since: 10/92 | Trustee, Office of Hawaiian Affairs (since 2000); Director, Hawaiian Electric Industries, Inc. (public utility holding company) (1993-2004) | 12 | Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1993); Director of Grace Pacific Corp.; Director of ACE Trucking, Inc.; Member of Advisory Board of Hawaiian Telecom Communications, Inc.; former Trustee of the Bernice Pauahi Bishop Estate (operation of school for children of Hawaiian ancestry) (1990-1999); Board member of various housing and real estate associations and community organizations. |
The Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, by calling (800) 258-9232.
101
PACIFIC CAPITAL FUNDS
Executive Officers. The table below sets forth certain information about each of the Trust’s executive officers.
Name, Address and Age | Position(s) Held | Term of Office | Principal Occupation(s) | |||
Robert I. Crowell 130 Merchant Street Suite 240 Honolulu, Hawaii 96813 Age: 58 | President | Indefinite; Since 6/06 | Executive Vice President, Bank of Hawaii (since 2002); Senior Vice President, Bank of Hawaii (1993-2002). | |||
Irimga McKay 3435 Stelzer Road Columbus, Ohio 43219 Age: 46 | Executive Vice President | Indefinite; Since: 12/02 | Executive Vice President, Client Services of BISYS Fund Services (since 1988). | |||
Jennifer Lam 130 Merchant Street Suite 240 Honolulu, Hawaii 96813 Age: 29 | Vice President | Indefinite; Since: 9/05 | Vice President, Bank of Hawaii (since 2005); Investment Analyst, International Finance Corporation, World Bank Group (2002-2005); Investment Banking Analyst, Credit Suisse First Boston (2000-2002). | |||
Alaina Metz 3435 Stelzer Road Columbus, Ohio 43219 Age: 39 | Vice President | Indefinite; Since: 9/96 | Vice President, Regulatory Services of BISYS Fund Services—Blue Sky Compliance (since 1995). | |||
George Stevens 3435 Stelzer Road Columbus, Ohio 43219 Age: 55 | Chief Compliance Officer | Indefinite; Since: 3/06 | Vice President, CCO Services of BISYS Fund Services (since 1996). | |||
Christopher E. Sabato 3435 Stelzer Road Columbus, Ohio 43219 Age: 37 | Treasurer | Indefinite; Since: 9/05 | Vice President, Fund Administration of BISYS Fund Services (since 1993). | |||
Patrick Keniston 100 Summer Street, Suite 1500 Boston, Massachusetts 02110 Age: 42 | Secretary | Indefinite; Since: 3/05 | Counsel, Legal Services of BISYS Fund Services (since 2005); Attorney, Citigroup GTS Fund Services (2001-2005). |
* | Each officer may have served in various other capacities for the same organization during the length of time served. |
102
PACIFIC CAPITAL FUNDS
Expense Examples (unaudited)
As a shareholder of the Pacific Capital Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases; redemption fees; and exchange fees; (2) ongoing costs, including management fees; distribution 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Pacific Capital Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2006 through July 31, 2006.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expense Paid During Period” to estimate the expenses you paid on your account during this period.
Beginning Account Value 2/1/06 | Ending Account Value 7/31/06 | Expense Paid During Period* 2/1/06 - 7/31/06 | Expense Ratio During Period** 2/1/06 - 7/31/06 | |||||||||||
New Asia Growth Fund | Class A | $ | 1,000.00 | $ | 1,016.80 | $ | 8.80 | 1.76 | % | |||||
Class B | 1,000.00 | 1,013.00 | 12.53 | 2.51 | ||||||||||
Class C | 1,000.00 | 1,013.20 | 12.53 | 2.51 | ||||||||||
Class Y | 1,000.00 | 1,018.30 | 7.56 | 1.51 | ||||||||||
International Stock Fund | Class A | 1,000.00 | 1,015.90 | 7.25 | 1.45 | |||||||||
Class B | 1,000.00 | 1,012.00 | 10.93 | 2.19 | ||||||||||
Class C | 1,000.00 | 1,013.00 | 10.98 | 2.20 | ||||||||||
Class Y | 1,000.00 | 1,017.80 | 6.00 | 1.20 | ||||||||||
Small Cap Fund | Class A | 1,000.00 | 969.30 | 8.11 | 1.66 | |||||||||
Class B | 1,000.00 | 965.70 | 11.75 | 2.41 | ||||||||||
Class C | 1,000.00 | 965.70 | 11.75 | 2.41 | ||||||||||
Class Y | 1,000.00 | 970.70 | 6.89 | 1.41 | ||||||||||
Mid-Cap Fund | Class A | 1,000.00 | 946.40 | 5.07 | 1.05 | |||||||||
Class C | 1,000.00 | 943.00 | 8.67 | 1.80 | ||||||||||
Class Y | 1,000.00 | 947.40 | 3.86 | 0.80 | ||||||||||
Growth Stock Fund | Class A | 1,000.00 | 927.20 | 6.69 | 1.40 | |||||||||
Class B | 1,000.00 | 923.30 | 10.25 | 2.15 | ||||||||||
Class C | 1,000.00 | 924.30 | 10.26 | 2.15 | ||||||||||
Class Y | 1,000.00 | 928.20 | 5.50 | 1.15 | ||||||||||
Growth and Income Fund | Class A | 1,000.00 | 967.40 | 6.68 | 1.37 | |||||||||
Class B | 1,000.00 | 963.80 | 10.32 | 2.12 | ||||||||||
Class C | 1,000.00 | 963.80 | 10.32 | 2.12 | ||||||||||
Class Y | 1,000.00 | 968.90 | 5.47 | 1.12 | ||||||||||
Value Fund | Class A | 1,000.00 | 1,046.70 | 6.80 | 1.34 | |||||||||
Class B | 1,000.00 | 1,043.60 | 10.59 | 2.09 | ||||||||||
Class C | 1,000.00 | 1,043.60 | 10.59 | 2.09 | ||||||||||
Class Y | 1,000.00 | 1,047.90 | 5.53 | 1.09 | ||||||||||
High Grade Core Fixed Income Fund | Class A | 1,000.00 | 1,000.80 | 4.71 | 0.95 | |||||||||
Class B | 1,000.00 | 997.10 | 8.47 | 1.71 | ||||||||||
Class C | 1,000.00 | 997.10 | 8.42 | 1.70 | ||||||||||
Class Y | 1,000.00 | 1,001.10 | 3.47 | 0.70 |
103
PACIFIC CAPITAL FUNDS
Beginning Account Value 2/1/06 | Ending Account Value 7/31/06 | Expense Paid During Period* 2/1/06 - 7/31/06 | Expense Ratio During Period** 2/1/06 - 7/31/06 | |||||||||||
Tax-Free Securities Fund | Class A | $ | 1,000.00 | $ | 1,002.80 | $ | 4.82 | 0.97 | % | |||||
Class B | 1,000.00 | 999.10 | 8.53 | 1.72 | ||||||||||
Class C | 1,000.00 | 999.10 | 8.53 | 1.72 | ||||||||||
Class Y | 1,000.00 | 1,004.00 | 3.58 | 0.72 | ||||||||||
High Grade Short Intermediate Fixed Income Fund | Class A | 1,000.00 | 1,013.40 | 3.64 | 0.73 | |||||||||
Class C | 1,000.00 | 1,009.70 | 7.37 | 1.48 | ||||||||||
Class Y | 1,000.00 | 1,014.70 | 2.40 | 0.48 | ||||||||||
Tax-Free Short Intermediate Securities Fund | Class A | 1,000.00 | 1,004.90 | 5.07 | 1.02 | |||||||||
Class C | 1,000.00 | 1,002.10 | 8.89 | 1.79 | ||||||||||
Class Y | 1,000.00 | 1,007.10 | 3.83 | 0.77 | ||||||||||
U.S. Government Short Fixed Income Fund | Class A | 1,000.00 | 1,019.50 | 3.25 | 0.65 | |||||||||
Class B | 1,000.00 | 1,015.80 | 7.00 | 1.40 | ||||||||||
Class C | 1,000.00 | 1,015.70 | 7.00 | 1.40 | ||||||||||
Class Y | 1,000.00 | 1,019.80 | 2.00 | 0.40 |
* | Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. |
** | Annualized. |
104
PACIFIC CAPITAL FUNDS
Hypothetical Example
The table below provides information about hypothetical account values and hypothetical expenses based on each Pacific Capital Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 2/1/06 | Ending Account Value 7/31/06 | Expense Paid During Period* 2/1/06 - 7/31/06 | Expense Ratio During Period** 2/1/06 - 7/31/06 | |||||||||||
New Asia Growth Fund | Class A | $ | 1,000.00 | $ | 1,016.07 | $ | 8.80 | 1.76 | % | |||||
Class B | 1,000.00 | 1,012.35 | 12.52 | 2.51 | ||||||||||
Class C | 1,000.00 | 1,012.35 | 12.52 | 2.51 | ||||||||||
Class Y | 1,000.00 | 1,017.31 | 7.55 | 1.51 | ||||||||||
International Stock Fund | Class A | 1,000.00 | 1,017.60 | 7.25 | 1.45 | |||||||||
Class B | 1,000.00 | 1,013.93 | 10.94 | 2.19 | ||||||||||
Class C | 1,000.00 | 1,013.88 | 10.99 | 2.20 | ||||||||||
Class Y | 1,000.00 | 1,018.84 | 6.01 | 1.20 | ||||||||||
Small Cap Fund | Class A | 1,000.00 | 1,016.56 | 8.30 | 1.66 | |||||||||
Class B | 1,000.00 | 1,012.84 | 12.03 | 2.41 | ||||||||||
Class C | 1,000.00 | 1,012.84 | 12.03 | 2.41 | ||||||||||
Class Y | 1,000.00 | 1,017.80 | 7.05 | 1.41 | ||||||||||
Mid-Cap Fund | Class A | 1,000.00 | 1,019.59 | 5.26 | 1.05 | |||||||||
Class C | 1,000.00 | 1,015.87 | 9.00 | 1.80 | ||||||||||
Class Y | 1,000.00 | 1,020.83 | 4.01 | 0.80 | ||||||||||
Growth Stock Fund | Class A | 1,000.00 | 1,017.85 | 7.00 | 1.40 | |||||||||
Class B | 1,000.00 | 1,014.13 | 10.74 | 2.15 | ||||||||||
Class C | 1,000.00 | 1,014.13 | 10.74 | 2.15 | ||||||||||
Class Y | 1,000.00 | 1,019.09 | 5.76 | 1.15 | ||||||||||
Growth and Income Fund | Class A | 1,000.00 | 1,018.00 | 6.85 | 1.37 | |||||||||
Class B | 1,000.00 | 1,014.28 | 10.59 | 2.12 | ||||||||||
Class C | 1,000.00 | 1,014.28 | 10.59 | 2.12 | ||||||||||
Class Y | 1,000.00 | 1,019.24 | 5.61 | 1.12 | ||||||||||
Value Fund | Class A | 1,000.00 | 1,018.15 | 6.71 | 1.34 | |||||||||
Class B | 1,000.00 | 1,014.43 | 10.44 | 2.09 | ||||||||||
Class C | 1,000.00 | 1,014.43 | 10.44 | 2.09 | ||||||||||
Class Y | 1,000.00 | 1,019.39 | 5.46 | 1.09 | ||||||||||
High Grade Core Fixed Income Fund | Class A | 1,000.00 | 1,020.08 | 4.76 | 0.95 | |||||||||
Class B | 1,000.00 | 1,016.31 | 8.55 | 1.71 | ||||||||||
Class C | 1,000.00 | 1,016.36 | 8.50 | 1.70 | ||||||||||
Class Y | 1,000.00 | 1,021.32 | 3.51 | 0.70 | ||||||||||
Tax-Free Securities Fund | Class A | 1,000.00 | 1,019.98 | 4.86 | 0.97 | |||||||||
Class B | 1,000.00 | 1,016.27 | 8.60 | 1.72 | ||||||||||
Class C | 1,000.00 | 1,016.27 | 8.60 | 1.72 | ||||||||||
Class Y | 1,000.00 | 1,021.22 | 3.61 | 0.72 |
105
PACIFIC CAPITAL FUNDS
Beginning Account Value 2/1/06 | Ending Account Value 7/31/06 | Expense Paid During Period* 2/1/06 - 7/31/06 | Expense Ratio During Period** 2/1/06 - 7/31/06 | |||||||||||
High Grade Short Intermediate Fixed Income Fund | Class A | $ | 1,000.00 | $ | 1,021.17 | $ | 3.66 | 0.73 | % | |||||
Class C | 1,000.00 | 1,017.46 | 7.40 | 1.48 | ||||||||||
Class Y | 1,000.00 | 1,022.41 | 2.41 | 0.48 | ||||||||||
Tax-Free Short Intermediate Securities Fund | Class A | 1,000.00 | 1,019.74 | 5.11 | 1.02 | |||||||||
Class C | 1,000.00 | 1,015.92 | 8.95 | 1.79 | ||||||||||
Class Y | 1,000.00 | 1,020.98 | 3.86 | 0.77 | ||||||||||
U.S. Government Short Fixed Income Fund | Class A | 1,000.00 | 1,021.57 | 3.26 | 0.65 | |||||||||
Class B | 1,000.00 | 1,017.85 | 7.00 | 1.40 | ||||||||||
Class C | 1,000.00 | 1,017.85 | 7.00 | 1.40 | ||||||||||
Class Y | 1,000.00 | 1,022.81 | 2.01 | 0.40 |
* | Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. |
** | Annualized. |
106
PACIFIC CAPITAL FUNDS
Proxy Voting
Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-258-9232. The information is also included in the Funds’ Statement of Additional Information, which is available on the Funds’ website at www.pacificcapitalfunds.com, and on the Securities and Exchange Commission’s website at www.sec.gov.
Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available on the Funds’ website at www.pacificcapitalfunds.com and on the Securities and Exchange Commission’s website at www.sec.gov.
Portfolio Holdings Information
The Funds file a complete list of their portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange Commission’s website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the Securities and Exchange Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the Securities and Exchange Commission at 1-800-SEC-0330.
107
For more information, call
800.258.9232
or visit our website at:
www.pacificcapitalfunds.com
INVESTMENT ADVISER
Asset Management Group of Bank of Hawaii
111 South King Street
Honolulu, HI 96813
SUB-ADVISERS
First State Investments International Limited
23 St. Andrew Square
Edinburgh
EH2 1BB
Hansberger Global Investors, Inc.
515 East Las Olas Blvd.
Fort Lauderdale, FL 33301
Nicholas-Applegate Capital Management
600 West Broadway
San Diego, CA 92102
Wellington Management Company, LLC
75 State Street
Boston, MA 02109
Bankoh Investment Partners, LLC
130 Merchant Street, Suite 240
Honolulu, HI 96813
DISTRIBUTOR
BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street
Los Angeles, CA 90071
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
191 West Nationwide Boulevard, Suite 500
Columbus, OH 43215
ADMINISTRATOR
Bank of Hawaii
130 Merchant Street, Suite 240
Honolulu, HI 96813
SUB-ADMINISTRATOR AND TRANSFER AGENT
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
To view Proxy Voting Records please visit the Pacific Capital Funds web site at www.pacificcapitalfunds.com.
This material is authorized for distribution to prospective investors only when preceded or accompanied by a current prospectus. An investor should consider the funds’ investment objectives, risk, and charges and expenses carefully before investing or sending money. This and other important information about an investment company can be found in the fund prospectus. To obtain more information, please call 800.258.9232. Please read the prospectus carefully before investing.
BISYS Fund Services Limited Partnership, Distributor.
MUTUAL FUNDS: ARE NOT FDIC INSURED ¨ HAVE NO BANK GUARANTEE ¨ MAY LOSE VALUE
PCR-0008 9/06
Item 2. | Code of Ethics. |
(a) The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as an Exhibit.
(b) During the period covered by the report, with respect to the registrant’s code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions; there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.
Item 3. | Audit Committee Financial Expert. |
3(a)(1) The Registrant’s Board of Trustees has determined that no member of the Board’s audit committee qualifies as an audit committee financial expert (“ACFE”).
3(a)(2) Not applicable.
3(a)(3) After evaluating the matter, the Board concluded that it was not necessary to add a Trustee to the Board who qualified as an ACFE, as the business experience of the current independent members of the Board was adequate to exercise their oversight responsibilities.
Item 4. | Principal Accountant Fees and Services. |
2006 | 2005 | |||||
a) Audit Fees | $ | 128,500 | $ | 120,000 | ||
b) Audit-Related Fees | $ | 4,300 | $ | 4,000 | ||
c) Tax Fees | $ | 54,090 | $ | 51,000 | ||
d) All Other Fees | $ | 0 | $ | 0 |
Nature of services regarding Audit-Related Fees:
2006: Consent on N-1A charges
2005: * N1-A Consent
Nature of services regarding Tax Fees:
2006: | Preparation of federal income tax and U.S. excise tax returns; preparation of Hawaiian corporate tax returns; excise tax distribution review. | |
2005: | * preparation of the Funds’ fiscal and taxable year ended July 31, 2005 federal income and United States excise tax returns, respectively, on Form 1120-RIC and Form 8613. | |
* preparation of the Funds’ fiscal and taxable year ended July 31, 2005 Hawaiian corporate tax return on Form M- 30. | ||
* review of the Funds’ projected calendar year 2005 required excise tax distributions. |
(e)(1) Registrant’s audit committee meets with the principal accountants and management to review and pre-approve all audit services to be provided by the principal accountants. The audit committee shall pre-approve all auditing services and permissible non-audit services (e.g., tax services) to be provided to the Funds by the auditor, including the fees therefore and has not adopted pre-approval policies and procedures as described in Rule 2-01 (c)(7)(i)(B) of Reg. S-X.
(e)(2) None of the services summarized in (a)-(d), above, were approved by the Audit Committee pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) For the fiscal years ended July 31, 2006 and July 31, 2005, Non-Audit Fees billed to the Funds for services provided to the Funds and any of the Funds’ investment advisers and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Funds for each of the last two fiscal years of the Funds, totaled approximately $55,000 for 2006 and $89,590 for 2005 ($58,390 KPMG LLP and $31,200 Ernst & Young LLP).
(h) Not applicable.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Schedule of Investments. |
Not applicable.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
Not applicable.
Item 11. | Controls and Procedures. |
(a)The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Exhibits. |
(a | )(1) | The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto. | |
(a | )(2) | Certifications pursuant to Rule 30a-2(a) are attached hereto. | |
(a | )(3) | Not applicable. | |
(b | ) | Certifications pursuant to Rule 30a-2(b) are furnished herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pacific Capital Funds | ||
By (Signature and Title)* | /s/ Robert I. Crowell | |
Robert I. Crowell, President |
Date | 10/5/06 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Robert I. Crowell | |
Robert I. Crowell, President |
Date | 10/5/06 |
By (Signature and Title)* | /s/ Christopher E. Sabato | |
Christopher E. Sabato, Treasurer |
Date | 10/5/06 |
* | Print the name and title of each signing officer under his or her signature. |